Dubai Aerospace Enterprise (DAE) Ltd US$ 1 Billion Senior Unsecured Revolving Credit Facility

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Deal successfully closed by Al Ahli Bank of Kuwait, Emirates NBD Capital limited, and First Abu Dhabi Bank PJSC

Dubai, United Arab Emirates: Dubai Aerospace Enterprise Ltd. (“DAE”) successfully signed a US$ 1,000,000,000 Senior Unsecured Revolving Credit Facility (the “Facility”). Al Ahli Bank of Kuwait (“ABK”), Emirates NBD Capital Limited (“EMCAP”), and First Abu Dhabi Bank PJSC (“FAB”), acted as the Initial Mandated Lead Arrangers and Bookrunners (together the “IMLABs”), and Emirates NBD Bank (P.J.S.C.) as the Facility Agent on the deal.

The Facility would primarily be utilized 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 4-Yr tenor, with an extension option. 

The Facility was signed on 31 March, 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 (P.S.C.), joining the Facility as lenders. 

Firoz Tarapore, Chief Executive Officer, Dubai Aerospace Enterprise commented: “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 optimize our liquidity planning and grow our business. We look forward to deepening our relationship with these banks in the upcoming years.” 

Omar Wahby, Chief Executive Officer – 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 optimize 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 commented: “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 optimize 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.”

About Al Ahli Bank of Kuwait:

Founded in 1967, Al Ahli Bank of Kuwait (ABK) is a leading Kuwaiti bank providing banking services and products across all its markets in Kuwait, the United Arab Emirates, and Egypt. 

Known for its ‘Simpler Banking’ approach, ABK Kuwait has 29 centrally located branches in Kuwait. ABK UAE has two full service branches in Abu Dhabi and Dubai, in addition to one wholesale banking branch located in the Dubai International Financial Centre (DIFC) which is regulated by the Dubai Financial Services Authority (DFSA) in the United Arab Emirates.  ABK Egypt has 44 strategically located branches in Egypt.

ABK offers a wide portfolio of financial products and seamless banking services to retail and commercial customers in the region. ABK is listed as one of the 10 safest banks in the Middle East by Global Finance. For more information, please visit www.eahli.com

About Emirates NBD Capital Limited: 

Emirates NBD Capital Limited is a leading regional investment bank offering customized advisory and capital financing solutions. The investment bank is a part of Emirates NBD Group, a leading banking group in the Middle East, North Africa and Turkey (MENAT) region. Emirates NBD Capital Limited is a DFSA regulated entity based in the Dubai International Financial Centre. For more information, please visit: www.emiratesnbd.com 

About First Abu Dhabi Bank PJSC: 

FAB is the UAE’s largest bank and one of the world’s largest and safest financial institutions. FAB’s vision is to create value for its employees, customers, shareholders and communities to grow stronger through differentiation, agility and innovation.

Headquartered in Abu Dhabi, the bank’s international network spans five continents, providing global relationships, expertise and financial strength to support local, regional and international businesses seeking to do business at home and abroad. FAB is a trusted adviser and regional partner to major institutions, emerging companies and individuals seeking to do business in the UAE, the MENA region and beyond. As an engine of growth for the region, it helps customers to thrive and grow stronger by managing risk, providing access to capital and facilitating trade flows across developed and emerging markets.