Dubai Aerospace Enterprise appoints banks to arrange $1bn loan

State-owned Dubai Aerospace Enterprise (DAE) has appointed Citigroup, Deutsche Bank, Emirates Bank and Lloyds to underwrite and arrange a $1 billion, three-year syndicated loan, a banking source said yesterday. Proceeds will be used to refinance existing debt and for general corporate purposes. The deal is split equally between a term loan and a revolving credit facility, and the margin is a little under 200 basis points over Libor, the source added. DAE said last week it was buying 18 aircraft from Emirates airline, comprising 10 Boeing 747-8Fs and eight GE90-115B-powered Boeing 777 freighter aircraft in a split purchase and leaseback deal. This latest agreement will increase DAE leasing portfolio to 49 aircraft with a further 200 Boeing and Airbus aircraft on order, due for delivery between 2010 and 2013. Earlier this... [read full story]