Emirates set to raise $600m in sukuk sale
Emirates is set to raise $600m from the sale of Islamic bonds as the world’s biggest airline by international passengers joins a rush of borrowers from the Gulf region. The Dubai government-owned carrier sold 10-year amortizing sukuk at a profit rate of 4.5%, the company said. The yield was cut from an initial guidance, which was in the high 4% range, according to a person familiar with the deal. Emirates will use the money for general corporate purposes. Emirates joins a list of regional issuers seeking funding from bond markets before increases in US interest rates push up borrowing costs. The emirate of Sharjah in the United Arab Emirates and Oman are among sovereigns that have raised funds via bonds so far this year, while Saudi Arabia is said to have selected banks to help manage an offering as soon as this month. Bond sales from the six-nation Gulf Cooperation Council, which includes the two biggest Arab economies of Saudi Arabia and the UAE, have raised $20.3b so far this year, according to data compiled by Bloomberg. That is just short of the $22.3b raised in the same period last year, when sales were at a record $85b.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-03-19/unaligned/emirates-set-to-raise-600m-in-sukuk-sale
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Emirates set to raise $600m in sukuk sale
Emirates is set to raise $600m from the sale of Islamic bonds as the world’s biggest airline by international passengers joins a rush of borrowers from the Gulf region. The Dubai government-owned carrier sold 10-year amortizing sukuk at a profit rate of 4.5%, the company said. The yield was cut from an initial guidance, which was in the high 4% range, according to a person familiar with the deal. Emirates will use the money for general corporate purposes. Emirates joins a list of regional issuers seeking funding from bond markets before increases in US interest rates push up borrowing costs. The emirate of Sharjah in the United Arab Emirates and Oman are among sovereigns that have raised funds via bonds so far this year, while Saudi Arabia is said to have selected banks to help manage an offering as soon as this month. Bond sales from the six-nation Gulf Cooperation Council, which includes the two biggest Arab economies of Saudi Arabia and the UAE, have raised $20.3b so far this year, according to data compiled by Bloomberg. That is just short of the $22.3b raised in the same period last year, when sales were at a record $85b.<br/>
