Emirates closes second dirham bond issue at AED 1.836 Billion

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.

HH Sheikh Ahmed Bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: "We are pleased to conclude our fifth successful bond offering, and we are delighted with the positive response from the investor community to our second Dirham bond issue. This 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.

Emirates is one of the world's most profitable and fastest growing international airlines. It currently operates a fleet of 94 aircraft to over 80 cities in Asia, Africa, Europe, the Middle East and North America. The airline receives an average of one new wide-bodied aircraft a month, and intends to start services to Beijing and Bangalore in the coming months.