Dubai Aerospace Enterprise (DAE) Ltd., Dubai’s government-controlled aircraft lessor, has announced that it has signed a “landmark” unsecured four-year loan of $480 million.
This amount can be increased to $800 million at any time after the initial closing. The deal involves Al Ahli Bank of Kuwait, First Abu Dhabi Bank, and Noor Bank.
Firoz Tarapore, Chief Executive Officer of DAE, said: “We are pleased to sign this landmark regional transaction lead by Al Ahli Bank, First Abu Dhabi Bank and Noor Bank. This transaction underlines both the regional liquidity available to top quality names and the strength of the DAE franchise.
“This facility further diversifies our funding sources and adds to the unsecured component of our liquidity profile increasing our unsecured revolving credit facilities to $1,125 – $1,445 million depending on the final committed amount of this facility. On a pro forma basis as of December 2017, if this facility is fully drawn and if the proceeds are used to pay down secured indebtedness, DAE’s percentage of unsecured debt would increase from 26% to a range of 31%-34%.”
DAE is reportedly in talks to buy 400 jetliners from Airbus and Boeing in an order that could be worth more than $40 billion at list prices.