DUBAI, Oct 21 (Reuters) - Dubai's Emirates airline has appointed BNP Paribas to arrange a $289 million bond offering for two Boeing 777-300ER aircraft, for delivery in 2009 and 2010.
Emirates, the world's largest non-alliance airline by international passenger traffic, has mandated the French bank to arrange the $289 million facility, guaranteed by U.S. Export-Import Bank, BNP Paribas said on Wednesday.
In October, Emirates issued a $413 million bond to finance three Boeing 777-300ER aircraft in the facility also guaranteed by the U.S. ExIm Bank.
The move reflects a further step from Dubai to test investor appetite for its debt following the global financial crisis which slowed down new corporate issues and demand for bonds.
The slowdown in the economy of Dubai, whose government and state-owned firms have $80 billion in outstanding debt, raised concerns over whether it can meet its refinancing needs in 2009.
State-owned developer Nakheel and the Department for Civil Aviation have bonds maturing on Dec. 14 and Nov. 4 respectively.
In recent weeks though, a slew of new bond issues, including Islamic bond or sukuk issues, have been announced in the United Arab Emirates, which have elicited interest from investors.
Nakheel has paid off $1.2 billion separate securitised bond a month ahead of its maturity date.
A series of roadshows for fixed income investors hosted by the government of Dubai kick off on Thursday in Hong Kong, which will also cover Europe, as well as the UAE.
A possible international bond sale would be the first from the emirate in more than a year and comes after Dubai International Capital, an investment firm owned by the ruler of Dubai, launched syndication for a $550 million loan.
Bankers told Reuters on Tuesday that DP World -- owned by Dubai government's conglomerate Dubai World -- is sounding out banks for a loan backing the construction of the London Gateway, a project on the Thames east of London.
(Reporting by Rachna Uppal) Keywords: EMIRATES/BNPPARIBAS (rachna.uppal@reuters.com, +971 4 366 4221, Reuters Messaging: rachna.uppal.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Emirates, the world's largest non-alliance airline by international passenger traffic, has mandated the French bank to arrange the $289 million facility, guaranteed by U.S. Export-Import Bank, BNP Paribas said on Wednesday.
In October, Emirates issued a $413 million bond to finance three Boeing 777-300ER aircraft in the facility also guaranteed by the U.S. ExIm Bank.
The move reflects a further step from Dubai to test investor appetite for its debt following the global financial crisis which slowed down new corporate issues and demand for bonds.
The slowdown in the economy of Dubai, whose government and state-owned firms have $80 billion in outstanding debt, raised concerns over whether it can meet its refinancing needs in 2009.
State-owned developer Nakheel and the Department for Civil Aviation have bonds maturing on Dec. 14 and Nov. 4 respectively.
In recent weeks though, a slew of new bond issues, including Islamic bond or sukuk issues, have been announced in the United Arab Emirates, which have elicited interest from investors.
Nakheel has paid off $1.2 billion separate securitised bond a month ahead of its maturity date.
A series of roadshows for fixed income investors hosted by the government of Dubai kick off on Thursday in Hong Kong, which will also cover Europe, as well as the UAE.
A possible international bond sale would be the first from the emirate in more than a year and comes after Dubai International Capital, an investment firm owned by the ruler of Dubai, launched syndication for a $550 million loan.
Bankers told Reuters on Tuesday that DP World -- owned by Dubai government's conglomerate Dubai World -- is sounding out banks for a loan backing the construction of the London Gateway, a project on the Thames east of London.
(Reporting by Rachna Uppal) Keywords: EMIRATES/BNPPARIBAS (rachna.uppal@reuters.com, +971 4 366 4221, Reuters Messaging: rachna.uppal.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
