Dubai-based airline, Emirates has announced the 4 new purchase of aircrafts. Priced a $913 million sukuk issue will be guaranteed by Britain’s export credit agency.
It is the first time that the British export credit agency has guaranteed a sukuk issue. London is looking for to boost its position as a centre for Islamic finance.
Emirates said that the transaction also represents the first time that a sukuk has been used to pre-fund the acquisition of aircraft and the first ever sukuk financing for A380 aircraft.
Emirates senior VP, Corporate Treasury Nirmal Govindadas said “We continually look for solid and innovative opportunities in the global market to finance our growing aircraft fleet, and we are very pleased with the tremendous response to this landmark transaction. The strong and diversified investor demand for the offering is a testament to investor confidence in the strength of the Emirates franchise.”
The proceeds from the issuance will be used to fund the acquisition of four Airbus A380-800 aircraft, which are expected to be delivered in April, May, June and July.