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Dubai on September 18
Dubai Aerospace Enterprise Limited announced today that it had signed a new multi-tranche financing deal, and that the financing was structured in the form of a mix of revolving credit facilities and term financing facilities, each consisting of conventional and Islamic tranches, while HSBC Bank took over J.P. Morgan acted as joint manager and joint lead arranger on the deal.
In light of the huge demand, the deal achieved more than double the expected initial subscription size and closed at US$1.6 billion with the participation of a group of 26 financiers, making it the largest bank loan financing raised by DAE to date.
The financing deal enabled DAE to benefit from Islamic banking liquidity, in addition to strengthening its existing banking relationships in the Middle East, Asia, North America, and Europe. The proceeds from the deal will be used to support the company’s future financing needs and refinance outstanding credit facilities.
Firoz Tarapore, CEO of DAE, said: “We are very pleased with the exceptional results achieved by the joint lead managers, who demonstrated a combination of effective leadership capabilities and sound market judgment, which enabled DAE to execute a successful financing deal to support the company’s strategy.” “.
He added, “The closing of the financing facilities deal, in addition to the increase in the subscription volume and exceeding its expected value, confirms the support and confidence that the banks have shown for DAE and its future growth prospects. These facilities will allow the company to maintain its strong liquidity and support the financing requirements for the acquisition process that we recently announced.” .
He stressed the company’s endeavor to continue strengthening banking relationships with banking partners in the coming years.
Sheikha Al Marri, Head of Governance and Corporate at HSBC Dubai, said: “HSBC has a long-standing relationship with DAE, which reflects the strong demand for this landmark deal from investors across a wide range of geographies.” , which has resulted in a significant increase in their final volume, clearly demonstrates how we harness the power of our network on behalf of our clients.”
In turn, Imran Zaidi, Head of Corporate Banking for the Middle East, North Africa and Pakistan at JPMorgan, said: “This deal received great demand and exceeded the targeted subscription value, which confirms investors’ confidence in DAE’s performance.”
