Dubai: Government-controlled Dubai Aerospace Enterprise (DAE) plans to raise up to $2 billion in July to finance part of its acquisition of Dublin-based aircraft lessor Awas, according to sources familiar with the matter.
DAE is favouring a bond issuance in the United States, with a bond roadshow expected to start there early next month, the sources said.
The proceeds would be put towards the acquisition announced by DAE in April that will more than double its fleet to 394 aircraft by the end of 2018.
DAE, the aircraft leasing and maintenance company controlled by the government of Dubai, previously said it would fund the deal through committed debt financing and internal resources.
It is acquiring Awas from private equity firm Terra Firma Capital Partners and the Canadian Pension Plan Investment Board (CPPIB).
The acquisition, subject to regulatory approval, is expected to close in the third quarter.
DAE will emerge as one of the world's major aircraft leasors once the deal completes, growing its fleet from 131 owned, managed and committed jets to 394 with a total value of over $14 billion. It will have more than 110 airline customers spread across 55 countries.
Awas has a fleet of 263 owned, managed and committed narrow and wide-body aircraft, including a pipeline of 23 new aircraft on order to be delivered before the end of 2018.