Abu Dhabi’s Etihad Airways is pricing an Islamic bond, or sukuk, issuance this week that will reach at least $500m, according to Reuters.

The five-year sukuk is expected to price at just above 200 basis points above midswaps.

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.

Etihad recorded $103m in net profits in 2015, and is rated A stable by Fitch thanks to its strong links to the Abu Dhabi government.