Emirates closes second dirham bond issue

DUBAI — Dubai-based Emirates airline yesterday announced the successful close of its second dirham denominated bond issue at Dh1.836 billion ($500 million).

By A Staff Reporter

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Published: Sat 8 Jul 2006, 10:24 AM

Last updated: Sat 4 Apr 2015, 3:01 PM

The issue will be a Floating Rate Note with a seven-year term and will pay a return of 0.65 per cent over six month EBOR (Emirates inter bank offered rate) to the investors. The issue will be listed on the Dubai Financial Market.

This is the largest dirham bond issue to date and is the first-ever such issue with a seven year term, with principal proceeds being paid on maturity.

The issue has been well received by a diverse set of investors which include banks, corporates and high net worth individuals.

The joint lead managers and joint book runners of the issue are Emirates Financial Services, HSBC Bank Middle East and National Bank of Dubai.

The size and pricing of the issue have been finalised on the basis of a book-building exercise undertaken alongside a roadshow event and investor presentations made in Dubai by senior members of the Emirates management team.

Shaikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Group, said: “We have concluded fifth successful bond offering, and the positive response from the investor community to our second dirham bond issue is testimony of their confidence in Emirates' financial strength and credit quality.”

The proceeds of the bond issue will be used for general corporate finance purposes.



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