DUBAI: Etihad Airways has set final pricing guidance of around 215 basis points above midswaps for its planned sukuk, expected to be at least $500 million (Dh1.84 billion) in size, according to one of the banks arranging the transaction.
The Islamic bond, which once completed will be Etihad’s debut US dollar debt sale, received orders of up to $1.3 billion, the bank said on Tuesday. Order books are expected to close as early as later in the day, it added.
Initial guidance, released on Monday, was in the low-to-mid 200 basis points range over midswaps.
HSBC, JP Morgan and National Bank of Abu Dhabi are the sukuk arrangers. They are joined by Abu Dhabi Islamic Bank, Dubai Islamic Bank and First Gulf Bank as bookrunners.The bond is expected to price this week, as reported by Reuters on Monday.
The airline, whose credit is rated A by Fitch, reported total revenues of about $9 billion in 2015, according to the presentation. At the end of last year it had 121 aircraft and it plans to take delivery of a further 188 by 2026, it added.
Etihad Airways Partners, a funding vehicle for the Abu Dhabi-based carrier and airlines in which it has equity stakes, has issued two bonds since September 2015, one of which was subsequently increased in size.
