DAE Signs New $440 Million Unsecured Revolving Credit Facility

Dubai Aerospace Enterprise (DAE) Ltd. has announced that it has signed a new long-term unsecured revolving credit facility with First Abu Dhabi Bank PJSC and HSBC Bank Middle East Limited as Bookrunners and Mandated Lead Arrangers.

Following an oversubscription in syndication the Facility was closed at an amount of $440 million with a group of 12 lenders. The Facility will support the future financing needs of the business.

Firoz Tarapore, Chief Executive Officer of DAE said: “We are pleased to sign this facility with First Abu Dhabi Bank and HSBC. This facility reinforces the strong availability of liquidity in the market and the confidence in DAE’s strategy and reputation.

“DAE has raised US$2.8 billion of new, long-term unsecured revolving credit facilities in the last year. These facilities support the growth of our business, dramatically boost the liquidity cushion and facilitate our migration to a principally unsecured debt issuer. Our Unsecured Debt - to - Total Debt ratio is approaching 60%.”

Andy Cairns, Head of Global Corporate Finance at FAB commented: “FAB is delighted to have been given the opportunity to co-lead this highly successful syndication which was specifically targeted at the Asian banking community. We look forward to supporting DAE in its future growth endeavors.”

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Hussain Al Tajir, Head of Dubai Coverage, Global Banking at HSBC commented “The significant oversubscription in syndication reflects the strength of DAE’s operational performance and strategic ambitions. We are pleased to have been able to support the growth of one of Dubai’s leading global corporations.”

With regard to another development, DAE announced that it had repurchased the approximately 4% of its common shares owned by Emaar Properties PJSC.

DAE is now 100% owned, directly and indirectly, by the Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai.

This transaction is expected to have no impact on the capital adequacy ratios of the company.

Khalifa H. Al Daboos, Deputy Chief Executive Officer of Investment Corporation of Dubai said: “Emaar was part of the initial investor group along with ICD when DAE was incorporated in 2006. We value the support they have provided over the years to grow DAE into the strong market leader it is today.”

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