Emirates launches $1bn five-year bond

DUBAI: Emirates launched a five-year $1 billion bond in an upsized offering at the lower end of its initial price guidance, four banking sources said.The bond launched at 330 basis points over midswaps, the sources said.Final price guidance for the bond was given in the range of 330 basis points to 337.5 basis points over midswaps. The bond is expected to price later in the day.The deal was upsized to $1 billion on strong demand. Reuters had earlier reported that the airline was planning to raise $750 million from the sale.Three market sources said order books for the bond were in excess of $5 billion, indicating huge demand for the issue. As a result, the bond is expected to perform well in secondary trading.“This is a very strong showing by the airline and highlights the improved liquidity in the markets now. This kind of investor appetite may prompt more Gulf corporates to tap the market,” said a fund manager based in the region.Emirates, one of the world’s fastest-growing airlines, wrapped up roadshows, which began in Hong Kong on May 23, in Switzerland on Monday.Lead arrangers for the issue are HSBC, Morgan Stanley, Deutsche Bank and Emirates NBD. – Arabnews