Monday 23 July 2018

Sheikh Ahmed...'Repaying from our cash reserves reflects our
strong financial position.'

Emirates to repay two bonds totalling over $1.1bn

DUBAI, June 9, 2016

Emirates Airline has announced that it will be closing two bonds in full this month, amounting to a total of $1.1 billion, which will be repaid from its own cash resources.

The airline announced that it has repaid a bullet bond in full for the value of Dh3.673 billion ($1 billion) on its maturity date of June 8 2016.

The $1 billion bullet bond was raised in 2011 to address Emirates’ working capital requirements. Emirates will also be repaying a bond totalling SGD150 million ($111 million) later this month, which was originally raised in 2006.

HH Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group said: “The repayment of these bonds illustrates Emirates’ continued ability to access international funding and garner support from financial markets and institutions. Emirates has a solid track record of meeting its financial commitments, underpinned by the airline’s overall financial strength. Tapping into our own cash reserves to repay these bonds is reflective of our strong financial position and prudent approach to liquidity.”

By the end of June 2016, Emirates will have repaid six bonds/sukuks (Islamic bonds) in full over the course of the last five years, totalling Dh10.4 billion ($2.84 billion).

HH Sheikh Ahmed added: “We will continue to work with the international financial community to deliver diverse, innovative sources of funding within an evenly spread financing portfolio for our business needs. Our strong business model and long-term financing strategy will position Emirates to unlock further growth with the delivery of 36 aircraft this financial year.”

In 2015-16, Emirates raised Dh26.9 billion ($7.3 billion) for aircraft financing. The airline has already received committed offers to finance deliveries for the current 2016-17 financial year.

Emirates closed the 2015-16 financial year with a healthy Dh14.1 billion ($3.8 billion) cash flow from operating activities. - TradeArabia News Service

Tags: Emirates | bonds | cash | repayment |

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