Dubai, UAE — Dubai Aerospace Enterprise (DAE) has raised its largest ever loan of $1.6 billion with a group of 26 financiers.
The new multi-tranche financing is structured as a combination of revolving credit facilities and term financing facilities, each comprising of conventional and Islamic tranches with HSBC and J.P. Morgan acting as joint bookrunners and joint mandated lead arrangers.
DAE said that in the wake of significant demand, the transaction was upsized in syndication to more than twice the envisaged initial size.
The facility enabled DAE to tap the Islamic banking liquidity and consolidate its existing banking relationships in the Middle East, Asia, North America, and Europe, it said.
Proceeds from the facilities will support the future financing needs of the business and refinance a maturing credit facility.
Firoz Tarapore, Chief Executive Officer of DAE, said, “The closing of these Facilities, as well as the upsizing and oversubscription, underscores the support and confidence that banks have shown in DAE and its future growth prospects.”