Emirates Airline has announced that the repayment of a bullet bond in full for the value of USD $1 billion (AED 3.673 billion) on its maturity date of 8 June 2016.
The Dubai based carrier had raised the bond to meet its working capital requirements in 2011. Emirates have also announced that it will be repaying a SGD 150 million taken in 2006.
““The repayment of these bonds illustrates Emirates’ continued ability to access international funding and garner support from financial markets and institutions. Emirates has a solid track record of meeting its financial commitments, underpinned by the airline’s overall financial strength,” commented, HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
“Tapping into our own cash reserves to repay these bonds is reflective of our strong financial position and prudent approach to liquidity.”
Emirates has also announced that by the end of this month, it would have repaid a sum total of USD $ 2.84 billion (AED 10.4 billion), over six bonds/sukuks (Islamic bonds), that were taken over the last five years.
“Our strong business model and long-term financing strategy will position Emirates to unlock further growth with the delivery of 36 aircraft this financial year,” added HH Sheikh Ahmed.
Emirates has raised USD $7.3 billion (AED 26.9 billion) to meet its aircraft financing needs in 2015-16 and the airline has already received committed offers to finance deliveries for the current 2016-17 financial year.