Abu Dhabi’s Etihad Airways’ Islamic bond, or sukuk, will be between $1.25 and $1.5bn, according to Reuters.

The final pricing is 210 basis points over midswaps, as the transaction closes.

The arrangers are the UK’s HSBC, the US’ JP Morgan and National Bank of Abu Dhabi, Reuters adds. The bookrunners also include Abu Dhabi Islamic Bank, Dubai Islamic Banks and local First Gulf Bank.

Etihad and its partner airlines issued a $700m five-year bond in September 2015. It had a coupon rate of 6.875 per cent. The funds were used for capital expenditure and investment in fleets, as well refinancing, depending on each airline’s needs.

The airline is rated A stable by Fitch thanks to its strong links to the Abu Dhabi government. Abu Dhabi five-year sovereign bonds priced at 85 basis points over midswaps in April 2016.