Emirates is set to sell $1 billion of Islamic bonds to pay for its superjumbo jet deliveries, according to inside sources.
Skift, via Bloomberg, has reported that UK Export Finance will guarantee the debt, with Emirates to issue this quarter as it takes its fleet of Airbus Group NV A380s to greater heights.
The sources of the story requested not to be identified, however a spokeswoman for Emirates emailed Bloomberg saying the airline has no comment on the deal.
The airline last tapped Islamic debt markets almost two years ago, Skift reported, but has splashed out on its wide-body aircraft orders to make the emirate into a hub for long-haul transfer flights.
The yield of the $1 billion of 3.875% sukuk (Islamic bonds) Emirates sold in March 2013 fell 10 basis points this year to 3.81%, according to Skift.
This can be compared to an average yield of 4.11% for JPMorgan Chase & Co., the regional sukuk index, which saw a drop of 20 basis points in the same period.
The Dubai-based carrier added 10 A380 routes in 2014 alone, and this year is set to welcome another 26 planes, including the superjumbos and Boeing Co. 777 planes, according to the company.
The UK’s export credit agency said in October it would guarantee an Islamic bond for an Airbus customer, added Skift.
Emirates has also ordered a total of 140 A380 superjumbos, according to data from the airline, but so far has only received 58 of them.
