Dubai's flagship carrier is eyeing to release a 10-year amortising Islamic bond this week following their early price discussion on the deal. According to the bank handling the arrangement of the Sukuk or 10-year amortising structure has a common value over five years maturing on 2023. The bond is structured in a manner where the value of the bond will gradually reduce over a set period of time. The borrower will settle the entire amount prior to the last date of maturity.
Initial profit rate guidance at a stretch averaging between 300 basis points to 350bps over 5-year maturity was released by major organizers. It is projected that the dollar-denominated sukuk will reach around $500million.
In January, Emirates tried the global debt markets for an amortising bond amounting to $750million but the response was quite cold due to the weak market reactions. It also funded aircraft deliveries through deals supported by two smaller export credit agencies.
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