Dubai Aerospace Enterprise to tap Islamic bond market
Aircraft lessor major intends to issue a sukuk "very soon"
The Dubai Aerospace Enterprise (DAE) intends to tap the Islamic bond market within the next nine months as part of a strategy to diversify the company's funding, its chief executive said on Monday.
The Dubai Government-controlled company became one of the world's largest aircraft lessors in August after acquiring Dublin-based Awas.
The DAE chief executive Firoz Tarapore said the company intended to issue a sukuk "very soon". Asked if that could take place by the middle of 2018, Mr Tarapore answered "most definitely".
He did not specify how much money the company could raise.
DAE wants to change its capital structure to include a higher percentage of unsecured debt, he said, and the company intends to be a repeat, benchmark issuer in the US debt market. A benchmark issue conventionally means upwards of US$500 million.
DAE raised $2.3 billion in the United States through a senior bond issue this year to finance its acquisition of Awas.
Updated: October 16, 2017 02:32 PM