Dubai Aerospace signs new loan deal with banks

Firm scrapped orders for over 200 Boeing, Airbus plans this month.
NEWS, Aviation


Majority state-owned Dubai Aerospace Enterprise said on Tuesday it had reached an agreement with banks for a four-year credit facility to replace an existing one that matures July 23.

DAE, whose leasing unit cancelled billions in aircraft orders this month, did not state the size of the credit facility nor any other terms.

Citi, Deutsche Bank , Emirates NBD and Lloyds were bookrunners for an existing $800m loan, maturing in July, and Noor Islamic Bank was mandated arranger, according to Thomson Reuters data.

After ordering more than 200 aircraft during an industry boom in 2007, Dubai Aerospace's leasing unit has been forced to cancel orders.

Earlier this month, DAE cancelled outstanding Airbus orders worth $5.8bn, delivering a blow to Dubai's fragile recovery from a 2009 debt crisis. Last week, it also cancelled orders for 35 Boeing 737s.

The recent resignation of the chief executive of DAE Capital will pave the way to consolidate management of the business in Dubai, DAE's managing director said in June.

DAE, formed in 2006 in a collaboration between several local names, including sovereign wealth arm Investment Corporation of Dubai, developer Emaar and state-linked DIFC Investments, specialises in maintenance, repair and overhaul (MRO) services, aircraft completions and aircraft leasing, and has more than $2bn in aircraft assets.

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