Dubai?s Emirates airline plans to lease new Airbus A380 superjumbo aircraft from finance company Doric, which will issue US$630mn of bond-type certificates to fund the purchase of the planes
Citigroup, Goldman Sachs and Morgan Stanley have been hired as bookrunners on the amount of the enhanced equipment trust certificates (EETCs) issued by Doric to finance the latest aircraft deal.
An EETC is a financial security through which the airline assumes ownership of the planes on maturity of the certificates, similar to secured debt financing such as mortgages.
The certificates will be offered to qualified institutional investors in the USA, with the proceeds set to be used to finance the acquisition of four Airbus A380s, industry sources said.
Pricing of the certificates is expected soon, Reuters reported.
Emirates, deemed as one of the world?s fastest-growing airlines, has been diversifying its funding strategy to expand its fleet and compete with regional peers such as Etihad Airways and Qatar Airways, signing a similar lease deal worth US$587.5mn in June 2012.
Doric signed a US$8bn deal to buy 20 A380s at the Paris Air Show, which took place from 17-23 June 2013.