Dubai-based Emirates Group has mandated eight banks to manage a sale of Islamic bonds, which could raise up to $1bn, according to a report by news agency Bloomberg.

It is understood the mandated banks include UK-based HSBC and Standard Chartered, US’ Citigroup, France’s BNP Paribas, and local Emirates NBD, Dubai Islamic Bank, Abu Dhabi Islamic Bank and Noor Bank.

According to the report, the bond issue is scheduled for the next few weeks and will aim to raise about $1bn.

If the sale pushes through, Emirates will join a list of regional issuers seeking funding from international bond markets before expected increases in US interest rates push up borrowing costs, the report said.

The airline deferred to comment on the appointment of the eight banks “until a deal is formally announced as per financial market regulations.”

Emirates recently placed a firm order for 20 Airbus A380 aircraft with an option for an additional 16 more. The contract is estimated to be worth AED58.7bn ($16bn) at list prices.

The firm order takes Emirates’ total number of aircraft on order and pending delivery to 263.

Negotiations between Emirates and the European aircraft manufacturer for the new order began last year, with the signing of a contract expected to take place, but which did not materialise,  in November last year during the Dubai Airshow.