Dubai Carrier flydubai Sets Initial Price Thoughts For Sukuk – Leads

Budget carrier Dubai Aviation Corp, known as flydubai, has set initial price thoughts on its planned dollar-denominated Islamic bond issue which could price on Wednesday, a document from lead managers said on Tuesday.

Pricing guidance for the five-year sukuk is in the area of 225 basis points over midswaps, the document showed.

The carrier, fully owned by the Dubai government, will conclude a series of investor meetings, which were due to be held in Singapore, the Middle East and Europe, on Tuesday.

The unlisted airline, which started operations in June 2009, made a net profit of $14 million in the first half of this year, according to an investor presentation seen by Reuters. Revenue in the period was $515 million, up 17.1 per cent on the same six months of 2013.

Credit Agricole, Dubai Islamic Bank, Emirates NBD, HSBC, National Bank of Abu Dhabi, Noor Bank and Standard Chartered are the arrangers for the sukuk sale.