Dubai Aerospace signs $480 mln loan facility with Gulf banks

Dubai Aerospace Enterprise (DAE), a government-controlled company, has raised a financing facility of $480 million from a consortium of banks.

Al Ahli Bank of Kuwait (ABK), First Abu Dhabi Bank (FAB) and Noor Bank have signed a financing facility, ABK said in a press statement on Monday.

The four-year tenor facility features both conventional and Islamic tranches, and can be increased to $800 million, it added.

The financing will support DAE’s purchase of the aircraft, spare engines and pre-delivery financing which it intends to dispose of or refinance.  Currently, the company has a fleet of nearly 400 Airbus, ATR and Boeing aircraft, valued at over $14 billion.

The loan has been arranged through a syndicated structure with ABK serving as the coordinating mandated lead arranger and bookrunner. UAE-based FAB acted as mandated lead arranger and bookrunner while Noor Bank was mandated lead arranger.

Besides, FAB will also act as the global agent, facility agent and investment agent, and Noor Bank will serve as the Islamic structuring agent.