Dubai Aerospace Enterprise (DAE) has announced that it has finalized agreements to acquire 23 aircraft from various counterparties for a total consideration of approximately $1.1 billion.
This consolidated aircraft portfolio boasts a weighted average age of just 3.4 years, a remaining weighted average lease term of 8.8 years, and is leased to 13 airlines across 9 countries. The portfolio is predominantly comprised of 91 percent narrow-body aircraft by value, with 86 percent featuring next-generation technology.
Read more: Dubai Aerospace Enterprise inks $420 million unsecured 5-year term loan
Firoz Tarapore, chief executive officer of DAE, expressed enthusiasm about the incorporation of the young portfolio of aircraft assets, noting their long lease terms. He also mentioned the company’s excitement in welcoming six new airline customers to their diverse global client base. Furthermore, he indicated that the addition of these aircraft is expected to lead to a nominal improvement of four percentage points in their next-generation, fuel-efficient fleet composition on a pro forma basis.
Additionally, all aircraft transactions are expected to be completed by the end of 2024.
Moreover, in March 2024, DAE entered into a $420 million 5-year unsecured term loan agreement with China Construction Bank (DIFC Branch) and China Construction Bank (Asia) Corporation Limited (CCB). The purpose of this loan was to support DAE’s future financing needs.
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