Dubai Aerospace Enterprise (DAE) has successfully obtained a $1.6 billion loan from a consortium of 26 financial institutions, marking its largest-ever financing effort.
This comes as DAE is actively pursuing expansion opportunities for its fleet, highlighted by a significant recent agreement with a Chinese company.
The financing has been achieved through multiple sections, orchestrated as a blend of revolving credit and term financing facilities. Both HSBC and J.P. Morgan acted as lead coordinators for the arrangement.
DAE’s CEO, Firoz Tarapore, emphasized the trust and backing financial institutions have demonstrated in DAE’s growth trajectory.
He stated: “This funding not only reinforces DAE’s robust liquidity but also caters to the financial demands of our newly unveiled order book procurement.”
Shaikha Al Marri, Head of Government and Corporates within the Global Banking team at HSBC Middle East, said: “HSBC has a longstanding relationship with DAE and 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, clearly demonstrates how we use the strength of our network on behalf of our clients.”
This financing empowers DAE to leverage liquidity from Islamic banking and further strengthen its banking ties across regions including the Middle East, Asia, North America, and Europe.
The funds procured will cater to DAE’s forthcoming financial demands and refinance an expiring credit facility.
Furthermore, DAE Capital, the Dubai-based firm’s aircraft leasing division, oversees and has the authority to manage a collection of approximately 550 aircraft from Airbus, ATR, and Boeing, valued at around $20 billion.
The global aviation services company has over 35 years of experience. The leasing and engineering divisions serve over 170 customers around the world from seven offices in Dubai, Dublin, Amman, Singapore, New York, Miami, and Seattle.
