Dubai Aerospace Enterprise Ltd (DAE) has 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 is to support DAE’s future financing needs.
Firoz Tarapore, CEO of DAE, stated that the transaction strengthens the already strong relationship between DAE and the DIFC Branch of one of the world’s leading banking organizations. He highlighted that the term loan enhances DAE’s exceptional liquidity, which amounted to $4.1 billion at the end of 2023. Tarapore thanked CCB DIFC Branch and CCB (Asia) for their continued support and expressed eagerness to collaborate with CCB in the future.
Yuan Shengrui, senior executive officer at China Construction Bank (DIFC Branch), expressed delight in collaborating once again with DAE, a globally significant enterprise in the aviation sector. Shengrui emphasized their commitment to a customer-centric approach and their desire to provide DAE with a wider range of financial products and services by leveraging CCB Group’s competitive advantage in the financial market.
Daphne Wat, deputy chief executive at China Construction Bank (Asia) Corporation Limited, acknowledged DAE as one of the key players in the global aviation industry. Wat expressed honor in supporting DAE as the Global Coordinator of this landmark transaction. She anticipates continuing the partnership with DAE, leveraging their strong presence in the aviation sector and expertise in the Hong Kong syndication market.
DAE secures record $1.6 billion credit facility
In September 2023, DAE secured a record-breaking $1.6 billion credit facility from a consortium of 26 financiers. The financing agreement included a combination of revolving credit and term financing facilities, incorporating both conventional and Islamic financing components. The transaction surpassed the initially predicted size, reaching over 100 percent in syndication with 26 financiers. These facilities not only enabled DAE to tap into the liquidity of Islamic banking but also strengthened its relationships in the Middle East, Asia, North America, and Europe.
Furthermore, in August 2023, DAE solidified its growth trajectory by signing a definitive agreement to acquire 64 Boeing 737 Max aircraft from a subsidiary of China Aircraft Leasing Group Holdings Ltd.
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