Emirates Hires Banks to Arrange $517 Million in Islamic Debt

Feb. 7 (Bloomberg) -- Emirates, the world’s largest airline by international traffic, plans to raise 1.9 billion dirhams ($517 million) from an Islamic financing facility to help purchase three aircraft.

The airline hired Dubai Islamic Bank PJSC, Al Hilal Bank and Ajman Bank PJSC to arrange the 12-year Ijara facility to buy planes including Boeing 777-300ERs and Airbus A380s, it said in an e-mailed statement today. Al Bayan reported the news earlier today.

Emirates is building the world’s largest fleet of Airbus superjumbo jets to establish Dubai as a long-haul travel hub and win passengers from Air France-KLM and Deutsche Lufthansa AG. The Dubai-based airline is one of the biggest buyers of Airbus SAS A380 superjumbos and the Boeing 777s, and in November signed a deal valued at $18 billion with Boeing Co.

The airline raised $1 billion from the sale of a five-year bond in June. The yield on the 5.125 percent bond rose two basis points today to 4.99 percent, according to prices compiled by Bloomberg.

To contact the reporter on this story: Dana El Baltaji in Dubai at delbaltaji@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net