DAE signs $1b senior unsecured revolving credit facility


(MENAFN- Khaleej Times) Deal successfully closed by Al Ahli bank of Kuwait, Emirates NBD Capital limited, and First Abu Dhabi Bank PJSC Firoz Tarapore, chief executive officer, Dubai Aerospace Enterprise, said the successful closing of the facility is testament to the continuous support and confidence that banks have shown to DAE and its future outlook. — File photo by Muzaffar Rizvi

Published: Tue 5 Apr 2022, 4:09 PM

Dubai Aerospace Enterprise Ltd (DAE) successfully signed a $1 billion senior unsecured revolving credit facility.

Al Ahli Bank of Kuwait (ABK), Emirates NBD Capital Limited (EMCAP), and First Abu Dhabi Bank (FAB), acted as the initial mandated lead arrangers and bookrunners, and Emirates NBD Bank as the facility agent on the deal.

The facility would primarily be utilised to consolidate and refinance DAE's existing syndicated financing facilities, with the balance proceeds for general corporate purposes and working capital requirements. The deal represents DAE's debut Secured Overnight Financing Rate (SOFR) linked syndicated transaction and incorporates a four-year tenor, with an extension option.

The facility was signed on March 31, 2022 and closed with the commitment of the IMLABs and two regional banks, including Commercial Bank of Dubai PSC, and National Bank of Ras Al Khaimah, joining the facility as lenders.

Firoz Tarapore, chief executive officer, Dubai Aerospace Enterprise, said the successful closing of the facility is testament to the continuous support and confidence that banks have shown to DAE and its future outlook.

“This facility will enable us to continue to optimise our liquidity planning and grow our business. We look forward to deepening our relationship with these banks in the upcoming years,” he said.

Omar Wahby, chief executive officer for UAE branches of Al Ahli Bank of Kuwait's (ABK), noted the successful execution of the facility underscores the close relationship between DAE and our Bank, as well as the partnership with“our colleague Mandated Lead Arrangers and Bookrunners ENBD and FAB. We thank the respective transaction teams for their diligent work and look forward to supporting DAE in their strategic growth”.

Hitesh Asarpota, managing director, head of Global Capital Markets & Loan Syndication, Emirates NBD Capital, said Emirates NBD is pleased to be lead another milestone deal on behalf of DAE; the consolidation and refinance exercise aims to streamline and optimise the Company's existing debt stack.

“Amidst a volatile market backdrop, the success of the Facility reiterates DAE's reputable standing, and its progressive performance trajectory despite challenging headwinds, especially in the global aviation sector. We are delighted to work with our partner banks, including ABK and FAB, to lead and deliver another successful transaction, and further solidify our progressive relationship with DAE.”

Fawaz Abu Sneineh, acting head of Global Corporate Finance, said First Abu Dhabi Bank is proud to have once again successfully partnered with Dubai Aerospace Enterprises on its USD 1bn Revolving Credit Facility.

“By anchoring and coordinating this Facility, DAE has successfully managed to consolidate their outstanding debt to optimise their capital structure. Despite the challenging market outlook for the global aviation sector, the transaction was significantly oversubscribed, which is testament to the resilience and sound management of DAE's balance sheet. In addition, we are very pleased to continue our partnership with ABK and ENBD on this landmark transaction,” he said.

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Khaleej Times

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