Emi­rates re­pays $500mn bond

The Financial Daily - - MARKET SUMMARY -

DUBAI: Emi­rates, one of the Arab world's largest car­ri­ers, said on Sun­day that it had re­paid a $500 mil­lion bond that was due this month and it is on course for a "record break­ing" fi­nan­cial year.

The bond, listed on the Lux­em­bourg Stock Ex­change, was orig­i­nally is­sued in 2004 with a seven year term.

"The re­pay­ment of this bond is part of Emi­rates over­all fi­nanc­ing strat­egy," the air­line's chair­man and chief ex­ec­u­tive Sheikh Ahmed bin Saeed al-Mak­toum said in a state­ment.

He said the air­line would con­tinue to use nor­mal di­verse range of op­tions avail­able to fi­nance its growth.

Emi­rates dropped plans for a bond to fi­nance ex­pan­sion af­ter the up­ris­ings in North Africa made rates more ex­pen­sive, its pres­i­dent Tim Clark said ear­lier this month.

The car­rier is on track for an­other record break­ing fi­nan­cial year, the com­pany said in a state­ment.

"The re­sults for the first half of the 2010-11 fi­nan­cial year are in­cred­i­bly ro­bust," said Sheikh Ahmed.

"We con­tinue to in­vest our prof­its in grow­ing the busi­ness and our healthy fi­nan­cial po­si­tion en­ables us to suc­cess­fully meet all of our fi­nan­cial com­mit­ments and raise fi­nanc­ing for fu­ture air­craft de­liv­er­ies."

He said that the 62 new air­crafts or­dered in the first half of 2010 will help the air­line cap­i­talise on its growth plans.

The Dubai-based air­line last year an­nounced a multi-bil­lion dol­lar in­crease in its fleet to in­clude 120 Air­bus A380 su­per­jum­bos.

Emi­rates is Dubai's flag­ship com­pany and one of the big­gest con­trib­u­tors to a lo­cal econ­omy hit hard by a prop­erty cri­sis. The gov­ern­men­towned air­line ri­vals longer es­tab­lished names for traf­fic be­tween Europe and east Asia. -Reuters

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