13.03.2013 - Emirates and AirAsia X favouring sukuk over costly conventional loans
AirAsia X, Malaysia's long-haul budget carrier, plans to sell its first Islamic bonds this year, joining Emirates Airlines in favouring sukuk over more costly loans. The company, which was started by millionaire Tony Fernandes who owns the UK's Queens Park Rangers soccer club, may issue $160 million of the debt as soon as the second quarter, Chief Executive Officer Azran Osman Rani said in a March 6 interview. Malaysian Airline System completed a sale of 5.3 billion ringgit ($1.7 billion) of the securities guaranteed by the finance ministry last month. Sharia-compliant bonds are well suited to the airline business given the long-term investments and income streams from passenger traffic, according to CIMB Group Holdings Bhd...............................................Full Article: Source
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