Emirates Airline Sets Guidance For $913m UK-Guaranteed Sukuk

Emirates, the Dubai-based airline, has set initial price thoughts for a $913 million sukuk issue that will be guaranteed by Britain’s export credit agency and may price as early as Wednesday, a document from lead arrangers showed.

The initial guidance for the senior unsecured ten-year sukuk issue is at around 100 basis points over midswaps, the document showed. The average life of the bond – the average time before the principal is expected to be repaid – is 5.37 years.

Funds will be used partly to pre-fund the acquisition of four new Airbus A380-800 aircraft which are expected to be delivered in 2015, the document showed.

It is the first time that the British export credit agency has guaranteed a sukuk issue. London is seeking to boost its position as a centre for Islamic finance.

Emirates has picked Citigroup, HSBC, JP Morgan and National Bank of Abu Dhabi as the joint structuring agents, with Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD and Standard Chartered also acting as joint lead managers, the document showed.