Mega order for planes boosts Emirates sukuk

[DUBAI] Emirates Islamic bonds are beating regional peers as the Dubai-based airline announced the world's biggest plane order, adding to the expansion that has boosted revenue by 80 per cent in the past five years.

The carrier's amortising sukuk due March 2023 has returned 3.1 per cent this quarter, according to data compiled by Bloomberg. That compares with a gain of 1.3 per cent for corporate sukuk from the Gulf Cooperation Council, according to HSBC/Nasdaq Dubai indices. Emirates ordered 150 planes from Boeing Co and 50 from Airbus SAS at this week's Dubai Airshow.

The airline has exploited Dubai's location to turn the city into an intercontinental hub, linking Europe and the Americas with Asia-Pacific and Africa. The world's largest international carrier said last week that it transported 15 per cent more passengers in the six months to Sept 30 than a year ago after receiving new planes and adding routes. Emirates said in August it's mulling sukuk sales to help finance aircraft purchases.