Dubai plane lessor DAE secures $300 million unsecured term loan

Dubai: Dubai-based plane lessor Dubai Aerospace Enterprise (DAE) announced Monday it has secured a $300 million three-year unsecured term loan with Bank of China’s Dubai Bank of China Limited, London Branch and Bank of China (Hong Kong) Limited (BOC).

The loan will be used for general corporate purposes and will support the future financing needs of the business, said DAE.

Firoz Tarapore, DAE’s CEO, said, “This transaction with BOC provides us with additional liquidity to support our ongoing commitment to meeting the needs of our airline customers while maintaining a modern and efficient fleet.”

He also said that the plane lessor is “pleased to deepen our relationship with Bank of China and look forward to continuing our collaboration with the entire Bank of China group in the years ahead.”

Meanwhile, Pan Xinyuan, General Manager of Bank of China (Dubai) Branch, said, “Bank of China values its growing relationship with DAE and is pleased to support this strategic financing. The successful execution of this transaction reflects the strength of our global network and our ability to deliver tailored solutions that meet the evolving needs of our clients across the aviation sector.”

He added, “In the future, the Bank of China will continue to deepen China-UAE relations and support the development of UAE enterprises.”

Last week, DAE announced it had signed a definitive agreement to sell approximately 75 aircraft in a strategic portfolio realignment. These announcements come close on the heels of DAE announcing its Q1 results for 2025. In the first quarter, DAE acquired 19 aircraft (13 owned and six managed) and sold 15 (11 owned and four managed).

The company also signed 61 lease agreements, extensions, and amendments. DAE reported a pre-tax profit margin exceeding 25 per cent and a return on equity of 13 per cent during this period.

DAE also signed a significant agreement last month to acquire Nordic Aviation Capital DAC (NAC) for an enterprise value of $2 billion. Upon completion, this acquisition is expected to add approximately 200 owned aircraft and 25 aircraft on order from Airbus and ATR to DAE’s fleet. Furthermore, DAE entered agreements to acquire 17 fuel-efficient, next-generation aircraft for $1.0 billion.