Dubai’s Emirates Airline could sells Islamic bonds, known as sukuk, as part of plans to raise $4.5bn in the next financial year to pay for new planes, a senior executive told Bloomberg.
Brian Jeffery, senior vice president for corporate treasury, told the news service that the world’s largest airline by international passenger traffic would need an average of $5.34bn per year over the next five years in order to finance delivery of 119 aircraft.
He said the financing options for this programme included sukuk and non-Shariah compliant bonds for the financial year starting April 2014.
“I’m pretty confident that, given the brand and the credit story of Emirates, sufficient funding will be available,” Jeffery said.
Emirates last tapped the sukuk market in March this year when it sold $1bn of Islamic bonds.
Any decision to sell bonds would be based on “pricing and an acceptable structure”, Jeffery. The cash raised over the next year will be used to pay for the delivery of 21 new jets, including ten Airbus A380s, nine Boeing 777-300 ER and two 777 freighters.
Emirates as it stands has a fleet of 201 aircraft with a further 192 on order, with a current list of price of $71bn.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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