Dubai Aerospace Enterprise (DAE) recently entered into new unsecured revolving credit facilities totaling $2.8 billion, enhancing its financial resources and superseding an earlier $1.4 billion facility.
The agreements stipulate a maturity date of March 2031 and increase the overall revolving credit capacity to around $4 billion.
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The DAE has officially announced that the funding for the facilities amounts to a total of $2.8 billion, consisting of $2.3 billion in conventional financing and $0.5 billion in Sharia-compliant liquidity, which was provided by a group of 15 international and regional banks.
Emirates NBD and First Abu Dhabi Bank served as the Initial Mandated Lead Arrangers, Bookrunners, and Coordinators for the traditional portion of the financing, with Abu Dhabi Islamic Bank overseeing the structuring of the Islamic facility.
DAE strategically organized the facility utilizing two distinct funding channels to increase opportunities for capital acquisition and preserve the adaptability of the balance sheet. The traditional tranche offers liquidity in USD and AED for the purposes of supporting aircraft acquisition, refinancing, and general corporate funding needs.
Shari’a-compliant financing, which adheres to Islamic principles, brings an extra level of liquidity that is in sync with the participation of regional banks.
The $0.5 billion portion enhances DAE's funding variety and enhances its connections with Islamic financial entities in the UAE and the broader Middle East region.
DAE manages a fleet of over 500 aircraft that are owned, operated, and committed to, with financing capabilities tied directly to the growth and optimization of the fleet and portfolio. The expansion of revolving credit capacity to $4 billion offers immediate access to short-term funds, facilitating more rapid completion of aircraft transactions and refinancing endeavors.
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DAE benefits from the flexibility of unsecured revolving facilities, which enable the company to efficiently manage its capital deployment in accordance with aircraft delivery schedules and lease placements. The extended maturity profile up to 2031 mitigates immediate pressure for refinancing and provides stability in funding availability over the long term.
The makeup of the bank syndicate demonstrates a high level of interest from lenders in aviation assets and leasing opportunities associated with UAE-based platforms. The involvement of 15 institutions indicates ongoing belief in DAE's strong creditworthiness, diversified asset portfolio, and secure leasing agreements with major international airlines.
Dubai Aerospace Enterprise (DAE) Ltd is a well-established international aviation services company consisting of two separate entities: DAE Capital and DAE Engineering. Based in Dubai, DAE caters to a vast network of more than 200 airline clients spanning across 80 countries, operating from its strategic office hubs in Dubai, Dublin, Amman, Singapore, Miami, and Seattle.
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DAE Capital is a renowned aircraft lessor that boasts a diverse fleet of around 750 Airbus, ATR, and Boeing aircraft, totaling a fleet value of US$25 billion. Operating from its cutting-edge facility in Amman, Jordan, DAE Engineering delivers top-notch regional MRO services across Europe, the Middle East, Africa, and South Asia, capable of handling up to 22 wide and narrow body aircraft. The company is certified to service 15 different aircraft types and holds regulatory approvals from more than 30 regulatory bodies worldwide.