Saudi Arabia's main airline said it's planning to sell as much as US$1.3b of Islamic bonds in Q2 to refinance loans and buy planes, becoming the latest issuer in the kingdom to tap debt markets for cash amid an oil slump. Saudia is in negotiations with local banks to oversee its first-ever bond offering, Saleh Al Jasser, the director general of Saudi Arabian Airlines, said Friday. The plans are part of a wider Islamic bond program the company will turn to "as and when needed" for funding, he said. "We will be initiating a sukuk program for the purpose of refinancing some of our existing loans and also to help finance our growth plans, to finance the acquisition of fleet," Al Jasser said. Saudia's sale comes as the airline, which bought 50 Airbus planes at the Paris Airshow last summer, seeks to boost its fleet to 200 by 2020. The carrier is following Emirates airline and flydubai in issuing sukuk. <br/>