Monday, 30 May 2011 at 11:52, Reuters, Dubai
Dubai's flagship carrier Emirates is eyeing a five-year benchmark dollar-denominated bond with early whispers indicating pricing of 350 basis points over midswaps, lead arrangers on the issue said on Monday.
Emirates, one of the world's fastest growing airlines, wraps up its bond roadshow, which began in Hong Kong on May 23, in Switzerland on Monday.
HSBC, Deutsche Bank, Emirates NBD and Morgan Stanley have been mandated as joint lead managers (JLMs) and joint bookrunners for the bond sale.
"They (Emirates) are looking at a five year, at about 350bps over midswaps," a banking source at one of the lead banks said.
Two other bankers with lead arrangers confirmed the issue details. Benchmark bond issues are typically at least $500 million.
When asked about the expected size of the offering, the first banking source said: "I don't think they are being too greedy with this one."
Final pricing and launch is expected to take place mid-week with US and UK markets closed on Monday for public holidays.
The Arab world's largest carrier posted a record profit of $1.5 billion for 2010, up 52 per cent from the previous year.
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