Dubai Aerospace Enterprise (DAE) Secures $420 Million Unsecured Term Loan for 5 Years

Dubai-based aviation services firm Dubai Aerospace Enterprise (DAE) Ltd announced on Wednesday that it has secured a $420 million five-year unsecured term loan with China Construction Bank (DIFC Branch) and China Construction Bank (Asia) Corporation Limited (CCB). The loan, as stated in a press release by the aircraft lessor, will cater to the company’s future financing requirements.

Firoz Tarapore, CEO of DAE, commented, “This term loan will further strengthen our already exceptional liquidity, which stood at $4.1 billion at the end of 2023. We would like to thank the CCB DIFC Branch and CCB (Asia) for their continued support and look forward to continuing to work with CCB in the future.”

In the previous year, DAE had successfully secured financing totaling $1.6 billion from 26 lenders, marking it as the largest loan financing raised by the company. DAE also reported a 16 percent increase in revenue for 2023, amounting to $1.3 billion, with a profit of $351 million.

Yuan Shengrui, Senior Executive Officer at China Construction Bank (DIFC Branch), expressed, “CCB DIFC Branch is delighted to collaborate again with DAE, a globally significant enterprise in the aviation sector. We are dedicated to maintaining a customer-centric approach, leveraging CCB Group’s competitive advantage in the financial market, and continue to strive to provide DAE with a more diverse range of financial products and services.”

DAE acquired a total of 20 aircraft (10 owned and ten managed) while selling 30 aircraft (22 owned and eight managed). The company also entered into 150 lease agreements, extensions, and amendments (114 owned and 36 managed). In 2023, DAE completed approximately 1.5 million man-hours and conducted 316 checks.

Daphne Wat, Deputy Chief Executive at China Construction Bank (Asia) Corporation Limited, remarked, “DAE is one of the top players in the global aviation industry. We look forward to continuing the partnership with DAE with our strong presence in the aviation sector and proficiency in the Hong Kong syndication market.”

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