Friday, 20 May 2011

Emirates airline hires four banks for potential bond

Emirates airline has zeroed in on four banks — Deutsche Bank, Emirates NBD, HSBC and Morgan Stanley - for a potential dollar-dominated bond issue, the Dubai-based carrier said yesterday.

"Emirates can confirm the appointment of the joint lead managers and our intention to go on a roadshow, with a view to launching a bond if market conditions, including pricing, are favourable," an Emirates spokesperson said.

When asked about the possible timeframe for the airline to issue the bond, Gary Chapman, Emirates Group President for Group Services and dnata, told Gulf News: "We are not under any pressure to do so. Everything is about opportunity and when we consider the market conditions to be best."

The roadshows for the bond reportedly will start in Hong Kong on May 23 and end in Zurich on May 30, with the meetings also to be held in Dubai, Abu Dhabi, Singapore, London and Geneva. "We will see what response we get from the roadshows and the issuing of a bond is going to be in line with what we get," said Chapman.

The news comes just 10 days after Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and Chief Executive of Emirates airline and Group, said the airline had postponed plans to issue a bond owing to unsuitable prices in the market. He said Emirates Group's cash balance of $4.4 billion (Dh16 billion) is providing a "good cushion" to the airline.

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