Dubai-based Emirates airline announced today that it has fully repaid a $550 million sukuk bond on its maturity date – June 18, 2012.
“The repayment of our first ever sukuk bond is part of Emirates’ varied financing strategy and reflects our robust financial position,” said His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
The sukuk, listed on the Luxembourg Stock Exchange, was originally issued in 2005 with a seven-year term. “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.
The $550 million sukuk 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.
“Our consistent profitability and sound business model continue to ensure that we receive sufficient offers of financing to support our long term growth,” Sheikh Ahmed added.
Emirates recorded its 24th consecutive year of profits in the 2011-12 financial year despite unprecedented economic pressure, highlighting its strong financials.
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 Sukuk.