Emirates picks banks for possible dollar bond
Dubai, May 19, 2011
Dubai's flagship carrier Emirates has picked four banks to arrange meetings for a potential dollar-denominated issue, the Arab world's largest airline said on Thursday.
HSBC, Deutsche Bank, Emirates NBD and Morgan Stanley have been mandated as joint lead managers and joint bookrunners, according to a document seen by Reuters that was confirmed by the airline.
Roadshows will take in Asia, the Middle East and Europe, the document said, with Hong Kong on May 23, according to the document.
'Emirates can confirm the appointment of the JLMs and our intention to go on a roadshow, with a view to launching a bond if market conditions, including pricing, are favourable,' the company told Reuters in an emailed statement.
Unlisted Emirates has been assessing various fundraising options for a while and it was reported in February the company was testing the waters about a potential bond issue.
Political instability in the wider region has hampered Gulf bond issuance this year although a large pipeline of potential issues exists.
Earlier this month, Emirates airline chairman Sheikh Ahmed bin Saeed al Maktoum said he would wait for pricing to improve before issuing a bond.
Two Islamic bonds, or sukuk, from the Gulf region priced on Wednesday show that market appetite for regional issuance is thought to be healthy, potentially paving the way for a wave of issues before the slow summer lull after June. - Reuters