Emirates eyes $1 billion bond
Dubai, September 29, 2011
Dubai's flagship Emirates airline is planning to issue $1 billion in bonds, a senior official was quoted as saying on Thursday, to counter uncertainty about financing as European banks struggle.
Brian Jeffrey, senior vice president of corporate treasury, told Arabic language daily al-Bayan, that the airline was considering the new bonds to finance aircraft purchases, given funding challenges faced by European banks.
Emirates, which issued a $1 billion bond in June, said diversifying funding options is always on the table.
"Emirates is always open to new financing opportunities as part of our overall diversified funding strategy. At this time we have no firm plans to release a new bond," the airline said in an emailed statement.
The global aviation industry faces growing uncertainty over financing due to Europe's debt crisis and worries surrounding French banks, which play a key role in the global aircraft financing market.
Emirates last tapped the bond market with a five-year 5.125 per cent issue in June which was massively oversubscribed. – Reuters