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Abu Dhabi, UAETuesday 11 December 2018

Dubai Aerospace Enterprise considers $500m bond raising

DAE may tap the market later this year or in 2019, chief executive says

Dubai Aerospace Enterprise's merged platform has completed 108 aircraft transactions during the first half. Courtesy of DAE Capital
Dubai Aerospace Enterprise's merged platform has completed 108 aircraft transactions during the first half. Courtesy of DAE Capital

Dubai Aerospace Enterprise, the UAE aircraft lessor with a global fleet worth some $14 billion, is mulling an issuance of at least a $500 million sukuk, its chief executive said on Monday.

The Dubai Government-controlled company, which became one of the largest leasers of aeroplanes in the world after acquiring Dublin-based Awas in August, may tap the market later this year or in 2019 depending on “market appetite”, Firoz Tarapore, chief executive of DAE, said on the sidelines of an aerospace conference in Abu Dhabi, without elaborating on the change in timeline or discussions with investors.

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“It’s 50-50 whether we do something this year or next year,” Mr Tarapore said. “Whatever the market will take, but $500m or more.”

The aircraft leasing company last year said it plans to issue a sukuk by mid-2018 without specifying how much it could raise.

In 2017, DAE raised $2.3bn in senior bonds split across three tranches in the US to fund its acquisition of Awas. That purchase propelled DAE into the top ranks of global players, swelling its fleet to nearly 400 aircraft.

DAE Capital, the leasing arm of Dubai Aerospace Enterprise, formed an asset management unit that will seek to build a $5bn portfolio of assets in the coming years, the company said in January.