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UAE's Emirates Airline pays off 1 billion USD bond

by June 9, 2016 General

DUBAI, June 9 (Xinhua) — Emirates Airline, an international carrier of the United Arab Emirates (UAE), said here Thursday that it has repaid a 1 billion U.S. dollar (3.673 billion dirham) bond in full on its maturity date Wednesday.

The so-called bullet bond, which is to be paid in one lump sum on the maturity date, was issued in 2011 to address Emirates’ working capital requirements, the carrier said in an e-mailed statement.

The airline said the bond was paid with its own cash reserves.

Emirates will also be repaying a bond, issued in 2006, totaling 150 million Singapore dollars (111.23 million dollars) “later this month.”

Sheikh Ahmed Bin Saeed Al-Maktoum, chairman and chief executive of Emirates Airline and Group, said the repayment of these bonds illustrates Emirates’ continued ability to access international funding and garner support from financial markets and institutions.

“Emirates has a solid track record of meeting its financial commitments, underpinned by the airline’s overall financial strength,” Sheikh Ahmed said.

By tapping into its own cash reserves to repay these bonds, the airline is showing its “strong financial position and prudent approach to liquidity,” he added.

Early last May, Emirates reported a 56 percent year-on-year jump in its net profit for the year that ended on March 31, 2016, to 7.1 billion dirham (1.93 billion dollars). It attributed the surge in profits to mainly lower oil prices.

Headquartered in Dubai, Emirates flies to over 150 destinations across all continents.