Emirates plans $400m international bond


Dubai: Emirates, the Dubai-based international airline, plans to launch an international bond issue in 2004.

The issue will be denominated in US dollars, for an initial amount of $400 million. It will have a maturity of seven years and will offer investors a floating-rate interest.
Sheikh Ahmed bin Saeed Al-Maktoum, chairman of Emirates said: "We have taken formal steps to issue this inaugural international bond early in the New Year.
“This will be the first time that Emirates will have a bond issue listed outside Dubai."
Sheikh Ahmed disclosed that Emirates is preparing for the bond initially to be listed in Luxembourg. Later it will be listed also on the Dubai International Financial Centre (DIFC) once the Centre becomes operational.
He added: “The bond will be joint-lead managed by HSBC, Emirates Bank International, National Bank of Abu Dhabi and National Bank of Dubai. It is anticipated that other banks will be invited into the deal to join the management group in due course.”