Etihad Airways receives `Islamic Deal of the Year’ award for $1.5 bn sukuk

Etihad Airways has been awarded the `Islamic Deal of the Year’ by Global Transport Finance for its debut sukuk.


Etihad Airways award

The airline completed a sukuk issuance raising $1.5 billion in November 2016 – the largest-ever in the aviation industry in the MENA region. The sukuk represented a landmark debt capital market transaction for both the aviation sector and the Islamic markets. The funding from institutional investors across MENA and Europe was the first-ever debt capital markets issuance by Etihad Airways.

Investor appetite

The airline successfully optimized pricing and size of the sukuk, reflected by investors’ appetite which resulted in the final transaction – $1.5 bn against an initial indication of $500 million.

HSBC, JP Morgan and National Bank of Abu Dhabi were mandated as joint arrangers for the five-year issuance, with Abu Dhabi Islamic Bank, Dubai Islamic Bank and First Gulf Bank mandated as joint bookrunners.

James Rigney, Etihad Aviation Group chief financial officer, said: “This historic transaction was the result of a solid plan put together by our treasury team which generated great feedback from the markets.”



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