Emirates to pay off $1.1bn of bonds, has financing for 2016/2017

Emirates Airline has repaid a $1bn bond in full and intends to repay a SGD 150m ($111m) bond later this month having already received offers to finance deliveries for its current financial year, the Dubai carrier announced today.

Both will be rapid from the airline’s own cash resources after it reported a 56 per cent increase in net profit to $1.93bn for its financial year ending March 31 2016.

Read: Dubai’s Emirates posts 56% jump in 2015 profit

The $1bn bullet bond was repaid on its maturity date on June 8. The other bond was originally raised 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,” said Emirates chairman and chief executive HH Sheikh Ahmed bin Saeed Al Maktoum.

“Tapping into our own cash reserves to repay these bonds is reflective of our strong financial position and prudent approach to liquidity.”

The airline said it will have repaid six bonds/Islamic bonds in the last five years by the end of June, totalling $2.84bn.

Sheikh Ahmed indicated the company would continue to look for funding from the financial community after raising $7.3bn for aircraft in 2015-2016.

Emirates said it had already received committed offers to finance deliveries for the 2016-2017 financial year.

“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,” he said.