By Christopher Mangham
Money will be used to refinance existing debt and general corpoate purposes.
State-owned Dubai Aerospace Enterprise (DAE) has appointed Citigroup, Deutsche Bank, Emirates Bank and Lloyds TSB to underwrite and arrange a $1 billion, three-year syndicated loan, a banking source said on Wednesday.
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. (Reuters)