Emirates set to close out $600M sukuk

dubai — Emirates announced the successful execution of a $600 million sukuk, which received good response from both local and international investors.

The issuance of the trust certificates, in the principal amount of $600 million, will be repaid in an amortising format over 10 years with legal maturity in March 2028. The proceeds from the issuance will be used for general corporate purposes including aircraft financing and working capital.

Nirmal Govindadas, Emirates senior vice-president for corporate treasury, said: “We are pleased with the level and quality of interest in this sukuk issuance. Emirates continues to take a diversified approach to our long-term financing strategy and today’s issuance confirms the confidence of international and regional investors in our strong track record as well as resilient and profitable business model.”

The certificates were priced on March 15 at a profit rate of 4.50 per cent, equivalent to 183.2 basis points over the 5 year US dollar mid-swaps.

The certificates are expected to be issued on March 22 and admitted into listing and trading on the regulated market of the Irish Stock Exchange and on Nasdaq Dubai.

The airline continues to raise capital via innovative structures, through various geographies and diverse sources of liquidity as part of its corporate funding strategy.