Emirates repays $550 million on time
Emirates has repaid a US$550 million sukuk bond in full on its maturity date of 18 June, 2012. The sukuk bond, listed on the Luxembourg Stock Exchange, was originally issued in 2005 with a seven year term.
The $550 million sukuk bond was the first of its kind to be issued by Emirates, representing its commitment to utilising a diverse range of funding tools, including Islamic financing.
“The repayment of our first ever sukuk bond is part of Emirates’ varied financing strategy and reflects our robust financial position,” commented Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group. “Our consistent profitability and sound business model continue to ensure that we receive sufficient offers of financing to support our long term growth.”
Emirates recorded its 24th consecutive year of profit in the 2011-12 financial year, despite unprecedented economic pressure, highlighting its strong financials.
“With the Eurozone debt crisis on-going it is likely that Islamic financing, with its large pool of liquidity, will play an increasingly important role for us moving forward,” added Sheikh Ahmed.
Emirates uses a variety of financing options, including: operating leases, EU/US export credits, commercial asset-backed debt, Islamic financing, conventional bonds as well as Islamic sukuks.