FlyDubai Follows Emirates as Airline Sukuk Demand Growing - Bloomberg

FlyDubai Follows Emirates as Airline Sukuk Demand Growing - Bloomberg:



"FlyDubai’s debut Islamic bonds are signaling growing appetite for sukuk from aviation companies in the Gulf as they spend on airports and fleet expansion.



The budget carrier raised $500 million this month in the first sale of the debt by a regional airline after Emirates, the world’s largest operator of A380 superjumbo planes. The issue received bids for more than six times the amount offered.



Gulf cities including Dubai, home to the world’s second-busiest airport, are investing $40 billion on infrastructure such as runways and passenger terminals, according to the International Air Transport Association. Boeing Co. (BA) forecasts Middle East airlines will need more than 2,600 new aircraft over the next 20 years, worth $550 billion. Sukuk will be part of the financing mix, said Mansoor Durrani at National Commercial Bank (NCB), Saudi Arabia’s biggest bank."



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