Subscribe Free
in Business & Finance

DAE secures four-year funding boost

Posted 21 May 2018 · Add Comment

Dubai Aerospace Enterprise (DAE) has signed a landmark unsecured four-year revolving credit facility with an initial commitment of US$480 million and an accordion feature that allows the facility to be increased to up to US$800 million at any time after the initial closing. The facility includes both conventional and Islamic tranches and will support the future financing needs of the business.


Firoz Tarapore, DAE’s chief executive 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 US$1,125 - US$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%.”
Michel Accad, Group CEO of ABK said: “The financing facility for DAE is one of the largest transactions of its kind involving conventional and Islamic tranches, making it a landmark deal for the region.”
ABK (DIFC) is fully compliant with the DIFC and DFSA rules and regulations in all its dealings and operations and only transacts with corporate clients and financial institutions that are Market Counterparts or Professional Clients, as defined by the DFSA, DAE said in a statement.
Last week DAE hinted at an imminent record order for around 400 aircraft. It was reported that it is in talks for buying single-aisle Airbus A320neo-family and Boeing 737 MAX planes. This follows last year’s acquisition of of Dublin-based lessor AWAS.
 

Representatives of Al Ahli Bank of Kuwait, First Abu Dhabi Bank and Noor Bank with DAE Chief Executive Officer Firoz Tarapore

* required field

Post a comment

Other Stories
Advertisement
Latest News

Arabian Adventures MICE wins SITE Crystal Award

For the second time in three years, Arabian Adventures Meetings, Incentives & Events (MICE) has won the prestigious SITE Crystal Award for Excellence in Incentive Travel, Africa and the Middle East.

Emirates wins two awards at 2019 ULTRAS

Emirates has picked up ‘Best Airline in the World’ and ‘Best First Class’ at the prestigious 2019 ULTRAs. Voted by the hundreds of thousands of readers of The Telegraph’s luxury travel magazines Ultratravel UK and Ultratravel Middle

Gulf air welcomes new Bahraini aircraft maintenance technicians

Gulf Air has welcomed a new batch of 22 Bahraini aircraft maintenance technicians who have recently joined the airline and began their training programme. With this recruitment Gulf Air has reached 90% Bahrainisation in the position of

Pegasus launches routes from London Stansted and Helsinki

Turkey's Pegasus airline has added two new direct routes to Ankara and Antalya from London Stansted for UK passengers, as well as a 43rd country to its network with the launch of flights to Helsinki from Istanbul Sabiha Gokcen.

AIME leaps into digital

Airlines are encouraged to take a quantum leap into digital and learn to think like the world’s largest innovators and disruptors in February.

New acting president and CEO for Alsalam Aerospace Industries

Alsalam Aerospace Industries has appointe Karl E. Jeppesen as Acting President and CEO, starting on 12 January, 2020.

AVMENA20 SK1309100620
See us at
AIME BT0801260220FIL20BT140124720Sofex BT2611020420AVMENA20 BT1309100620MRO_BT161219260220AVAFA20BT2607050320SaudiAirshow21BT2011180221