DAE opens $2.1 billion syndicated loan

Dubai Aerospace Enterprise has launched a $2.1 billion syndicated loan, adding another large bank financing to its funding programme as the aircraft lessor manages a substantially enlarged global fleet following major acquisitions this year.

DAE is rated Baa2 by Moody’s and BBB by Fitch. The launch places the Dubai-based aviation services group back in the syndicated loan market less than six months after it arranged $2.8 billion of long-term unsecured revolving credit facilities with 15 global financial institutions.

Details on the tenor, pricing, use of proceeds and lender group for the new $2.1 billion transaction were not publicly disclosed at the time of the launch. Syndicated loans are typically arranged by a group of banks and then distributed among a wider set of lenders, allowing borrowers to raise sizeable amounts while diversifying funding relationships.

The transaction comes after DAE completed its $9 billion acquisition of Macquarie AirFinance on July 29, a deal that significantly increased the scale of its aircraft leasing business. After closing the acquisition, DAE said it would serve more than 175 airline customers in 75 countries and have an owned, managed and committed fleet of about 1,000 aircraft.

The company’s financing activity has accelerated alongside that expansion. In March, DAE signed $2.8 billion of new long-term unsecured revolving credit facilities replacing an existing $1.4 billion facility and maturing in March 2031. Those facilities raised its revolving credit capacity to about $4 billion.

The March package comprised $2.3 billion of conventional funding and $500 million of Sharia-compliant liquidity. Emirates NBD and First Abu Dhabi Bank acted as initial mandated lead arrangers, bookrunners and coordinators on the conventional facility, while Abu Dhabi Islamic Bank was mandated lead arranger on the Islamic tranche.

DAE’s latest reported financial position showed a sizeable liquidity cushion before the Macquarie AirFinance transaction closed. Available liquidity stood at $4.38 billion at June 30, up from $3.40 billion at the end of 2025, while net loans and borrowings declined to $9.80 billion from $10.23 billion over the same period.

Revenue for the first six months of 2026 rose to $865.9 million from $843.6 million a year earlier. Profit before tax and exceptional items increased to $229.9 million from $217.1 million, while the pre-tax profit margin improved to 26.6 per cent from 25.7 per cent.

The company reported that 89.4 per cent of its debt was unsecured at the end of June, compared with 87.8 per cent at December 31. Its net-debt-to-equity ratio was 2.61 times, against 2.58 times at year-end, while its liquidity coverage ratio rose to 1,202 per cent as it prepared to close the Macquarie acquisition.

Chief executive Firoz Tarapore said when the half-year results were released that DAE’s enhanced scale, broader product offering and financial strength would allow the group to serve airline customers more comprehensively. He also said the company’s co-investment programmes were expected to add about $15 billion of aircraft assets over five years.

DAE has also expanded its financing flexibility through partnerships that allow outside investors to participate in aircraft ownership. Agreements announced this year with Blackstone Credit & Insurance and Neuberger established long-term co-investment platforms alongside the lessor’s directly owned fleet.

Operationally, DAE acquired 18 aircraft and sold 39 during the first half, while signing 114 lease agreements, extensions and amendments. Its fleet at June 30 comprised 638 owned, managed and committed aircraft, before completion of the Macquarie transaction. Operating cash flow was $594 million, compared with $659 million in the corresponding 2025 period.

The group continued adding aircraft commitments after acquisition. On August 10, it announced a purchase-and-leaseback agreement with Saudia covering four Boeing 777 freighters for delivery between October 2026 and May 2027.

The company operates through DAE Capital, its aircraft leasing and finance division, and DAE Engineering, which provides airframe maintenance, repair and overhaul services. Its business spans offices in Dubai, Dublin, London, Amman, Singapore, Miami, Seattle and San Francisco.