National Air Services to issue Islamic bonds to finance new jets
By Massoud A. Derhally
Bloomberg News
DUBAI: National Air Services, the Saudi Arabian operator of the largest fleet of private planes in the Middle East, will raise financing for 15.5 billion riyals' worth of previously announced plane orders through loans and sales of Islamic bonds.
"One of the instruments that NAS will pursue is Islamic sukuk to finance the acquisition of aircraft," the chief executive, Taher Agueel, said Sunday during an interview from Saudi Arabia, referring to Islamic bonds. "We are in the process of getting local and international financial institutions to conclude such a proposal and the overall strategy of financing."
National Air Services, also known as NAS, will raise the equivalent of $4.1 billion through the bonds and loans.
The Islamic bonds known as sukuk are likely to be listed on the Saudi stock exchange, Agueel said. He reiterated NAS's plan to sell at least 30 percent of its shares next year.
NAS placed 98 aircraft orders and commitments this year that will increase the company's fleet to 142 planes by 2012. NAS pledged to buy 20 Airbus A320s with an option to buy 18 more at the Paris Air Show last month. If NAS exercises its option, the order would be valued at $2.77 billion.
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