Abu Dhabi: Emirates airline announced on Thursday that it has repaid a bullet bond [Bullet bond is a debt instrument whose entire face value is paid at once on the maturity date] in full for the value of $1 billion on its maturity date of June 8.
The bond was raised in 2011 to address Emirates’ working capital requirements. Emirates will also be repaying a bond totaling 150 million Singapore dollars later this month that was raised in 2006.
The airline is repaying both bonds from its own cash resources.
By the end of 2016, Emirates will have repaid six bonds and sukuks in full over the course of the last five years, totaling $2.84 billion.
“The repayment of these bonds illustrates Emirates’ continued ability to access international funding and garner support from financial markets and institution. Our strong business model and long-term financing strategy will position Emirates to unlock further growth with the delivery of 36 aircraft this financial year,” said Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation, Chairman and Chief Executive of Emirates airline and Group.
In 2015-16, Emirates raised $7.3 billion for aircraft financing. For the current 2016-17 financial year, the airline said it has already received committed offers to finance deliveries.
