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Wed 23 Jul 2008 11:08 PM

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Dubai's DAE appoints banks to lead $1bn loan - banker

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)

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