Emirates repays Sukuk

The US$ 550 million sukuk bond was the first of its kind to be issued by Emirates representing its commitment to utilising a diverse range of funding tools, including Islamic financing. 

“The repayment of our first ever sukuk bond is part of Emirates’ varied financing strategy and reflects our robust financial position,” commented His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.  “Our consistent profitability and sound business model continue to ensure that we receive sufficient offers of financing to support our long term growth.” 

Emirates recorded its 24th consecutive year of profit in the 2011-12 financial year, despite unprecedented economic pressure, highlighting its strong financials. 

“With the Eurozone debt crisis on-going it is likely that Islamic financing, with its large pool of liquidity, will play an increasingly important role for us moving forward,” added Sheikh Ahmed. 

Emirates uses a variety of financing options, including: operating leases, EU/US export credits, commercial asset-backed debt, Islamic financing, Conventional bonds as well as Islamic Sukuks. 

Industry analyst Saj Ahmad commented: "Emirates decision to pay off its sukuk in full shows its disciplined financial strength despite the backdrop of banking and financial uncertainty in key markets like Europe and the US. 

“It also puts paid to any suggestion of financial preferential treatment of Emirates with this repayment and demonstrates that for the last seven years, as the airline has grown substantially, it has a policy of ensuring its financial obligations are covered.” 

Ahmad concluded: With a cash balance of over $4bn, Emirates usage of Islamic and Sharia-compliant financing for its expansion means that they are not short of money and have a plan in place to invest in further such sukuks if necessary."