Emirates Airline has repaid a bullet bond in full for value of US$ one billion (AED 3.673 bn).
The US$ one billion bullet bond was raised in 2011 to address Emirates’ working capital requirements. The airline will also be repaying a bond totalling SGD 150 million later this month, which was originally raised in 2006. The airline is repaying both bonds from its own cash resources.
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. The airline 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 end of June 2016, Emirates will have repaid six bonds/sukuks (Islamic bonds) in full over the course of the last five years, totalling US$ 2.84 bn (AED 10.4 bn).
In 2015-16, the airline raised US$7.3 bn (AED 26.9 bn) for aircraft financing. The airline has already received committed offers to finance deliveries for the current 2016-17 financial year.