Dubai: The Dubai owned aircraft leasing firm DAE has secured financing totalling $1.6 billion from 26 lenders, and making this the biggest loan financing raised by the company. DAE – or Dubai Aerospace Enterprise – had been in the thick of recent deal-making to expand on its fleet, including a major one recently with a Chinese firm.
The $1.6 billion is secured via multiple tranches, structured as a ‘combination of revolving credit facilities and term financing facilities’. HSBC and J.P. Morgan were joint book-runners and joint mandated lead arrangers.
“The closing of these facilities, as well as the upsizing and oversubscription, underscores the support and confidence that banks have shown in DAE and its future growth prospects,” said Firoz Tarapore, CEO of DAE. “The facilities will allow DAE to maintain its exceptional liquidity and support the financing requirements of our recently announced order book acquisition.”
The funding allows DAE to tap Islamic banking liquidity as well as 'consolidate its existing banking relationships from Middle East, Asia, North America, and Europe'. Proceeds will support the future financing needs of the business as well as refinance a maturing credit facility.
Its aircraft leasing arm DAE Capital owns, manages and has the mandate to manage a fleet of around 550 Airbus, ATR and Boeing aircraft with a fleet value of $20 billion.
In August, DAE cut a deal with China Aircraft Leasing Group for 64 Boeing 737 Max.
The very robust demand for this landmark transaction from investors across a wide range of geographies, which resulted in a significant increase in its final size
