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.
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.”