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Emirates airline mandated local and international banks to arrange a global investor roadshow ahead of a possible sukuk issuance. The carrier mandated Citi and Standard Chartered Bank as global coordinators and joint lead managers, alongside BNP Paribas, HSBC, J.P. Morgan, Abu Dhabi Islamic Bank, Dubai Islamic Bank, First Abu Dhabi Bank, Emirates NBD Capital, and Noor Bank as joint lead managers. Proceeds from the issuance will be used for general corporate purposes. Emirates did not disclose the size of the possible sukuk, but said it will be of benchmark size. The company has tapped the debt capital markets with four issuances since 2011 raising over $3.65 billion, over 50% of which has been from sukuk. The most recent aircraft order was for 36 Airbus A380s worth $16 billion and was made in late January. Delivery of the aircraft will begin in 2020.

Dubai's Emirates airline plans to raise as much as $1bn through sukuk before higher US interest rates push up borrowing costs. A spokeswoman said the company was constantly seeking diverse sources of funding, including bank finance, operating leases, Islamic financing, sukuk and bonds. Governments in the Gulf oil-exporting countries borrowed from international bond markets at a record pace in 2017 as they sought to cover budget deficits worsened by low oil prices. Saudi Arabia raised $21.5bn through sukuk and other bonds, followed by Abu Dhabi’s $10bn issue and Kuwait’s $8bn fundraising. Emirates raised $913mn through a sukuk issue with a 10-year lifespan in 2015. Proceeds funded the acquisition of four Airbus A380-800s, the world’s largest passenger aircraft. Airbus recently questioned the future of the A380, in case Emirates does not place a crucial order for new airplanes.

Emirates, the Dubai-based airline, has hired banks to help it arrange a sukuk of up to $1 billion, as the airline seeks to raise cash to finance its pipeline of aircraft orders. The issue will be backed by UK Export Finance (UKEF). UKEF expected to guarantee an Islamic bond in 2015 issued by a customer of Airbus, Britain finance ministry said in October. The upcoming U.K.-backed Emirates deal could close by the end of the first quarter. The transaction is likely to be worth up to $1 billion, with the lifespan being between five and 10 years. Eight banks are arranging the transaction: HSBC, Citigroup, JP Morgan , National Bank of Abu Dhabi, Dubai Islamic Bank, Abu Dhabi Islamic Bank, Emirates NBD and Standard Chartered.

Emirates have secured a $425 million shariacompliant loan from a group of UAE banks to finance the acquisition of two Airbus A380 aircraft. Emirates used the loan to take delivery of its 50th A380 in Hamburg last month. The aircraft is scheduled to enter into service sometime in early August. Abu Dhabi Islamic Bank (Adib), Commercial Bank of Dubai (CBD) and Dubai Islamic Bank (DIB) were the joint book runners and initial mandated lead arrangers in the transaction. Emirates is the largest operator of the superjumbo A380 and have a further 90 on order. The airline’s president, Tim Clark, has previously said he is interested in ordering more of the superjumbos if Airbus is able to manufacture a more fuel efficient “neo” version.

Al Salam Bank Bahrain acquired an equity stake in two new Boeing planes which are being leased long-term to Emirates Airlines. Thus, investors have the opportunity to benefit from a regular income stream with a yield of 9% p.a. secured by a top tier airline. The Bank retained a sizeable stake of the investment in the proprietary portfolio and sold down the remaining portion to its investors.