Emirates launches USD1bn bond sale

Emirates launched a five-year USD1 billion bond on 01-Jun-2011, to be listed on the London Stock Exchange, in an upsized offering at the lower end of its initial price guidance (Reuters/Bloomberg/Gulf News/KUNA/Khaleej Times/Associated Press/The National, 01/02-Jun-2011).The bond launched at 330 basis points over midswaps with a coupon of 5.125%. Final price guidance for the bond had been in the range of 330 basis points to 337.5 basis point over midswaps and carried a reoffer price of 99.904. The deal was increased to USD1 billion on strong demand. The order books for the bond was reportedly in excess of USD5 billion. It was previously reported that the carrier was planning to raise USD750 million from the sale. This latest issue from Emirates has received an overwhelmingly positive response from a very wide range of investors, which is indicative of our financial strength," CEO Sheikh Ahmed bin Saeed Al Maktoum said. Proceeds will be used for general corporate financing purposes and as "security measure" to meet its obligations when the need arises, Emirates President Tim Clark said. Lead arrangers for the issue are HSBC, Morgan Stanley, Deutsche Bank and Emirates NBD.