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Emirates Repays $550m Sukuk

Emirates Repays $550m Sukuk

The Dubai-based airline announced that it has repaid its Islamic bond on maturity date.

Emirates Airline has repaid a $550 million Sukuk maturing today, the company said in a statement. The Islamic bond, listed on the Luxembourg Stock Exchange, was issued in 2005 with a seven-year term of maturity.

“The repayment of our first ever Sukuk bond is part of Emirates’ varied financing strategy and reflects our robust financial position,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO, Emirates Airline and Group.

The $550 million bond was the first of its kind to be issued by Emirates.

“With the on-going Eurozone debt crisis, it is likely that Islamic financing, with its large pool of liquidity, willplay an increasingly important role for us moving forward,” added Sheikh Ahmed.

Last week, Emirates’ president, Tim Clark, told a local daily that while the airline was well financed for its future plane deliveries, it might look at another bond issue if required.

The airline uses several financing options, including operating leases, EU/US export credits, commercial asset-backed debt, Islamic financing, conventional bonds and Sukuks, it said in the statement.

In May, the carrier announced that its 2011 full year profit reached Dhs1.5 billion, a 72 per cent decline compared to the Dhs5.4 billion it made last year.

The airline’s revenues grew 14.9 per cent year-on-year to reach Dhs62.3 billion, but profit was hit by a steep rise in fuel costs.

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