Tuesday / November 13.
HomeChannelsFeaturedflydubai emulates big brother for sukuk issue

flydubai emulates big brother for sukuk issue

flydubai|By TAP Staff| Flydubai, Dubai’s low-cost carrier, is following its big brother Emirates airlines to debut a benchmark-sized sukuk issue for which it has mandated seven banks.

“As part of the diversification of our financial strategy, we are in discussion with our advisers to explore the possibility of issuing a bond and we will continue to explore all financing options available to us,” flydubai said in a statement.

The mandated banks include Credit Agricole , Dubai Islamic Bank, Emirates NBD, HSBC, National Bank of Abu Dhabi, Noor Bank and Standard Chartered, according to IFR, a Thomson Reuters unit..

The mandate runs for six months, but leads are hoping to complete the preparations within two months to give the issuer the option of launching the deal this year, the sources added.

The consortium secured the mandate after the carrier asked banks to group together and bid for the right to arrange the deal, a source with knowledge of the matter told Reuters.

A separate grouping of Abu Dhabi Islamic Bank, BNP Paribas, Citi, Deutsche Bank, Gulf International Bank and JP Morgan also bid, added the source, who declined to be named as the information was not public.

Dubai’s flagship airline Emirates is the only Gulf carrier to raise funds through bonds or sukuk. It last sold a $1 billion sukuk in March last year.

In February, flydubai Chief Financial Officer Mukesh Sodani said at a conference that the firm would look to raise funds through a bond issue and was considering a sukuk option.

The Dubai-based carrier is aiming for a benchmark-sized offer in 2015, funds from which would be used for the company’s general operating expenses as well as to fund some of its aircraft deliveries, Sodani had said.