Annual Report 2008-2009 - Emirates.com

Emirates
096
20. Borrowings and lease liabilities
Non-current
Bonds (Note 21) 6,650,525
Term loans (Note 22) 409,162
Lease liabilities (Note 23)
8,080,188
15,139,875
Current
Term loans (Note 22) 121,746
Lease liabilities (Note 23) 1,248,306
Bank overdrafts (Note 30) 1,576
1,371,628
16,511,503
Borrowings and lease liabilities are denominated in the following currencies:
UAE Dirhams
2,157,518
US Dollars 13,232,246
Singapore Dollars 965,800
Others 155,939
The effective interest rate per annum on lease liabilities and term loans was 3.38% (2008: 5.13%) and on bonds was 3.69% (2008:
5.30%).
21. Bonds
Bonds are denominated in the following currencies:
UAE Dirhams 1,836,500
Singapore Dollars
967,120
US Dollars
3,856,650
2009 2008
AED'000 AED'000
6,745,067
520,909
5,034,634
12,300,610
393,296
1,022,979
-
1,416,275
13,716,885
2,234,603
10,240,657
1,063,151
178,474
2009
2008
AED'000 AED'000
1,836,500
1,065,064
3,856,650
6,660,270 6,758,214
Less: Transaction costs (9,745) (13,147)
Bonds are repayable as follows:
6,650,525 6,745,067
Between 2 and 5 years
6,288,350 4,514,251
After 5 years
362,175 2,230,816
Contractual repricing dates are set at six month intervals except for bonds denominated in Singapore Dollars amounting to AED
483.6 million (2008: AED 532.5 million) which carry a fixed interest rate over their term.
USD bonds, carried at AED 2,020.2 million (2008: AED 2,020.2 million), represent the proceeds raised from an Islamic 'sukuk'
(bond) issue to finance the construction of certain buildings.
The fair value of bonds amount to AED 6,325.4 million (2008: AED 6,728.4 million). The fair value of the Singapore Dollar bonds is
AED 700.8 million (2008: AED 1,035.2 million), which is based on listed prices. The fair value of the other bonds is determined by
discounting projected cash flows using the interest rate yield curve for the remaining term to maturities and currencies adjusted for
credit spread.