Emirates today announced the successful close of its US$ “Reg S” bond issue at USD1 billion.
The unrated issue will carry a coupon of 5.125 % p.a. fixed, payable semi-annually. It will have a five-year maturity and will be listed on the London Stock Exchange.
“This latest issue from Emirates has received an overwhelmingly positive response from a very wide range of investors, which is indicative of our financial strength. This also shows a high level of confidence in our successful business model and growth plans,” said HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
Emirates was able to achieve attractive pricing from a wide geographical spread of investors including banks, fund managers and insurance companies, following fixed income investor meetings in Hong Kong, Singapore, Abu Dhabi, Dubai, London, Geneva and Zurich.
The Joint Lead Managers of the issue are Deutsche Bank, Emirates NBD, HSBC and Morgan Stanley.
Proceeds will be used for general corporate financing purposes.
The bond will be subject to the stabilisation rules of the FSA (Financial Services Authority, U.K.) and ICMA (International Capital Market Association).
Market sources disclosed that order books for the bond were in excess of $5 billion. The bond is expected to perform well in secondary trading.
