Emirates to raise $517m Islamic loan

Dubai's Emirates airline has hired three local banks to arrange a Dh1.9-billion ($517.3 million) Islamic loan facility to finance three aircraft, the chief executive of one of the banks confirmed on Tuesday.

The Dubai government-owned airline has asked Dubai Islamic Bank, Ajman Bank and Al Hilal Bank to arrange the financing deal for two Airbus A380 superjumbos and one Boeing 777-300, Mohamed Berro, chief executive of Abu Dhabi government-owned Al Hilal Bank told Reuters.

"I can confirm the amount," said Berro.

The loan will be a 12-year facility and the paperwork for the deal is expected to be completed by the end of the month, he said.

A local Arabic newspaper reported earlier in the day that the airline had hired the banks to arrange a loan for financing two planes.

Emirates' officials were not immediately available for comment.

The rapidly expanding Gulf Arab carrier said in November that it was eyeing the more resilient Islamic finance market to fund aircraft deliveries, as international banks back out of plane deals because of the euro zone debt crisis.

Emirates placed a blockbuster order for 50 Boeing 777 jetliners at the Dubai Air Show last year and is the largest customer of the Airbus A380 superjumbos.