Emirate to seek US$1b sukuk to diversify funding

Emirates is talking to banks about raising as much as US$1b through an Islamic bond sale that could happen in the first half, people familiar with the matter said. The carrier joins a list of regional issuers seeking funding from international debt markets before higher US interest rates push up borrowing costs. International bonds are particularly popular as cheap oil limits local banks’ ability to underwrite large debt sales or to extend loans. Emirates has been a regular borrower in the aircraft-financing loan market. Another reason the company is seeking a sukuk is that it wants to diversify its funding, the people said, asking not to be identified. Emirates raised $913m through a sukuk issue with a 10-year lifespan in 2015, with the proceeds funding the acquisition of 4 Airbus A380-800s. <br/>