UK Export Finance has underwritten its first Islamic bond in a further sign of the City's growing role in the global market for Sharia-compliant debt.

The government-backed export credit guarantee agency has provided cover for a $913m (£617m) Islamic bond issued by Dubai's Emirates Airline to purchase aircraft including the giant Airbus A380.

Britain recently became the first country outside the Muslim world to issue Islamic bonds, known as Sukuk. The £200m bond issued last year attracted healthy investor interest and was the first step in encouraging wider investment from the region to the City of London.

Read the complete original version of this item...