Dubai’s Emirates appoints banks for sukuk roadshow

Dubai airline Emirates has appointed banks to arrange a global investor roadshow for a potential sukuk issue.

The airline said it had mandated Citibank and Standard Chartered Bank as the global coordinators.

They will also act as joint lead managers along with Abu Dhabi Islamic Bank, BNP Paribas, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JP Morgan and Noor Bank.

The roadshow to meet fixed income investors will begin on March 8 and end on March 13, with visits to Asian, European and Middle Eastern investors.

“A benchmark sukuk (Islamic bond) issue, the proceeds of which to be used for general corporate purposes, may follow subject to market conditions,” the carrier said.

The size of the potential sukuk was not disclosed but it is expected to be $500m or larger. Reuters said a document from one of the banks arranging the sale showed it would be a 10-year sukuk amortised over a five-year period.

Emirates has made four corporate issuances since 2011, raising $3.65bn. Half of these were in the sukuk format.

In 2015 it raised $913m through a UK Export finance backed sukuk for pre-funded aircraft financing.

The airline has also repaid six bonds worth $2.8bn since 2010.

In November, Emirates Group reported a more than 100 per cent surge in net profit for its airline division in the first half of its fiscal year to $452m.

Difficult operating conditions linked to the low oil price saw profit dip 75 per cent during the same period in 2016.

Read: Dubai’s Emirates reports 111% increase in first half profit