Dubai: Low-cost carrier flydubai is in talks with its advisers for a potential bond issuance, the airline said on Wednesday after earlier reports the airline had pooled together banks for a debut sukuk.
“As part of the diversification of our strategy, we are in discussion with our advisers to explore the possibility of issuing a bond and we will continue to explore all financing options available to us,” the airline said in an emailed statement to Gulf News.
Reuters earlier reported, citing unnamed sources, Dubai’s low cost airline had mandated seven banks — Credit Agricole, Dubai Islamic Bank, Emirates NBD, HSBC, National Bank of Abu Dhabi, Noor Bank and Standard Chartered — to arrange a potential debut sukuk issue.
Flydubai brought the consortium together after it asked banks to bid as group for the right to organise the bond, Reuters reported.
The mandate reportedly runs for six months.
In February, flydubai Chief Financial Officer Mukesh Sodani said the airline would consider raising funds through a bond for the company’s general expenses and aircraft deliveries.
Last November, flydubai announced an order for up 111 Boeing 737s. In 2008, the airline ordered 50 737, which will be fulfilled in 2015. November’s order will start delivery between 2016 and 2017, according to the airline.
Flydubai is reportedly chasing benchmark-sized offer next year, which traditionally means upward of $500 million (Dh1.8 billion).
Dubai’s other government owned airline, Emirates, last sold a $1 billion sukuk in March last year.
