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First ever Debt Capital Markets issuance by Dubai Aviation Corporation

Dubai Aviation Corporation (trading as "flydubai"), today came to the market with a landmark debut Sukuk transaction and successfully raised $500 million through a 5 year Sukuk

Dubai Aviation Corporation (trading as "flydubai"), today came to the market with a landmark debut Sukuk transaction and successfully raised $500 million through a 5 year Sukuk. 

The order book was over 6 times oversubscribed demonstrating the strong investor appetite for this paper. The well-planned and swift execution took advantage of the positive market environment to build a high-quality order book for a 5 year Sukuk.

The $500mn 5 year Sukuk priced at a profit rate of 3.776%, equivalent to 200 basis points over the 5-year USD Mid-swaps. The issuance is a stand-alone. Proceeds of the issuance will be used for general corporate purposes and refinancing.

The issuance was extremely well received globally and generated a large order book with over 150 investors placing orders of approximately US$3 billion. Orders were received from a wide range of high quality fixed income investors, including fund managers, private banks, and banks from a wide geographic spread across Asia, Europe, the Middle East, and offshore US. The high-quality and diversified order book enabled flydubai to price the transaction at a very tight spread, after two price revisions.

The 5 year Sukuk issuance saw a geographic distribution of 64% to Middle East accounts, 25% to European accounts, 7% to Asia, and an additional 4% to US offshore.

In terms of distribution among types of investors, the 5 year Sukuk saw a diverse allocation with 65% to Banks, 20% to Fund Managers, 8% to Private Banks and an additional 7% going to other types of investors.

Statement from His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of flydubai

"We are very pleased at the excellent market reception to flydubai's landmark Sukuk issue. The highly successful offering demonstrates the confidence which international investors place in the Emirate of Dubai and its entities and confirms the access to funding which our corporates enjoy from the Islamic Capital Markets. Investors' strong interest resulted in the order book reaching to over US$3 billion, over 6 times of the offer amount. This is a highly successful result that further confirms the credibility of flydubai and the investors' confidence in the promising outlook for flydubai, and Dubai's status as a leading global aviation hub. The outcome is a testament to the invaluable support provided by the Government of Dubai to our institution and the wider industry, and part of the ongoing visionary leadership of His Highness, Sheikh Mohammed bin Rashed Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai."

The Joint Lead Managers on the transaction were Crédit Agricole CIB, Dubai Islamic Bank P.J.S.C., Emirates NBD Capital, HSBC, National Bank of Abu Dhabi P.J.S.C., Noor Bank P.J.S.C., Standard Chartered Bank.

About flydubai

From its home in Dubai, flydubai has created a network of more than 90 destinations served by a fleet of 59 aircraft. Since commencing operations in June 2009, flydubai has been committed to removing barriers to travel, creating free flows of trade and tourism and enhancing connectivity between different cultures across its ever-expanding network.

 flydubai has marked its journey with a number of milestones:

 An expanding network: Created a network of more than 95 destinations in 50 countries across Africa, Central Asia, the Caucasus, Central and South-East Europe, the GCC and the Middle East, and the Indian Subcontinent.
Serving underserved markets: Opened more than 70 new routes that did not previously have direct air links to Dubai or were not served by a UAE national carrier from Dubai. 
An efficient single fleet-type: Operates a single fleet-type of 59 Boeing 737 aircraft and includes: 34 Next-Generation Boeing 737-800, 22 Boeing 737 MAX 8 and 3 Boeing 737 MAX 9 aircraft.
Enhancing connectivity: Carried more than 75 million passengers since it began operations in 2009.

For all our latest news, please visit the flydubai Newsroom.

Dubai Aviation Corporation, trading as “flydubai”,
Dubai International Airport,
PO Box 353,

The numbers listed here are for members of the media only. For enquiries relating to your booking, please telephone the Call Centre on (+971) 600 544 445.