Aviation News Item: 00087

10th Oct 2009

Source: evaint.com

Dubai-based Emirates airline has announced the successful pricing of its inaugural US bond offering, guaranteed by the Export Import Bank of the United States, related to a loan facility secured for three new Boeing 777-300ER aircraft. The transaction is in the amount of US$413.7m with a fixed rate coupon of 3.465 per cent per annum. The secured notes are due 21st, August 2021 and are payable in instalments of principal and interest, on a quarterly basis.

"This transaction is very important for the industry as it represents the first offering of its kind directly into the global public capital markets. We believe bond markets represent an important source of capital for the airline industry in general and for Emirates in particular," said Brian Jeffery, Senior Vice President, Corporate Treasury at Emirates.

Goldman, Sachs & Co. and Calyon Securites acted as joint bookrunners and joint structuring agents. Clifford Chance represented Emirates as issuer's counsel and Milbank, Tweed, Hadley & McCloy LLP acted as underwriters' counsel. Vedder Price PC acted as counsel for Ex-Im Bank.

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