Abu Dhabi: Emirates announced on Monday the pricing of $913 million (Dh3.4 billion) certificates due in 2025 whereby proceeds from the issuance will be used to fund the acquisition of four Airbus A380-800 aircrafts, which are set for delivery in mid-2015.
The aircrafts will be leased to and operated by Emirates Airlines. The certificates were issued by Khadrawy Limited and with the benefit of a guarantee by Her Britannic Majesty’s Secretary of State acting by the Export Credits Guarantee Department of the UK government (UKEF).
The issuance of the certificates with a tenor of 10 years marks the world’s first sukuk financing supported by UKEF, and is the largest capital markets offering in the aviation space with an export credit agency guarantee.
The transaction also marks the first time that a sukuk has been used to pre-fund aircraft acquisition, and the first sukuk financing for A380 aircrafts.
The certificates were priced at a profit rate of 2.47 per cent, and saw strong demand for global investors, attracting orders that exceeded $3.2 billion. They were allocated to over 45 global institutions, with nearly 39 per cent of the certificates being distributed to the Middle East and Asia, 32 per cent to Europe, and 29 per cent to the US.
Roughly 47 per cent of the certificates were distributed to fund managers, 38 per cent to banks, and 15 per cent to insurance companies and pension funds.
The certificates are expected to be issued on Tuesday, and admitted to listing and trading on the London Stock Exchange and on Nasdaq Dubai.
