Emirates to repay USD500m in cash if refinancing terms cannot be reached

Emirates President of Group Services and Dnata, Gary Chapman, announced the carrier plans to repay a USD500 million bond due in Mar-2010, if the carrier cannot reach "attractive" terms to refinance, as the carrier has a USD3.4 billion cash balance (Bloomberg, 12-May-2010). The bonds were priced at 80 basis points above LIBOR in 2004, with HSBC appointed as advisor. Mr Chapman added the carrier may consider issuing five-year notes later in 2010.

Emirates: "We won't be able to get that sort of financing, the way the world markets are. We are not going to be under any pressure to refinance if we decide that the terms are not attractive enough," Gary Chapman, President of Group Services and Dnata. Source: Bloomberg, 12-May-2010.