Emirates mandates banks for benchmark sukuk roadshow

Dubai-based Emirates has mandated a number of global and local banks to arrange a global investor roadshow for a benchmark sukuk, starting March 8, the airline said in a statement on Wednesday.  

Citi and Standard Chartered Bank have been appointed global coordinators and joint lead managers, along with Abu Dhabi Islamic Bank, BNP Paribas, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JPMorgan and Noor Bank as joint lead managers.

"Emirates continually looks for innovative financing opportunities in the global markets and is looking forward to working with lead bank partners on this latest transaction," it said.

The sukuk, proceeds of which will be used for general corporate purposes, may follow subject to market conditions, the airline said.

Benchmark sukuk deals are generally upwards of $500 million.

According to Emirates, it has tapped the debt capital markets with four corporate issuances since 2011, raising over $3.65 billion (AED 13.4 billion). Over 50 percent of the amount has been in the sukuk format.

Since 2010, the airline has fully repaid six bonds, including sukuk, totaling $2.8 billion (AED10.4 billion).

In 2015, Emirates raised the UK Export Finance-backed $913 million sukuk utilized for pre-funded aircraft financing.

The airline has accessed the conventional debt capital markets and Islamic funding for 8 percent of all the company’s funding needs over a ten-year period up to March 31, 2017.