Dubai's DAE inks $900m agreement to sell 16 aircraft

Dubai Aerospace Enterprise says three deals include sale of Boeing 737 and Airbus A320, A330, and A350 family aircraft
Dubai's DAE inks $900m agreement to sell 16 aircraft
By Sam Bridge
Wed 30 May 2018 02:43 PM

Dubai Aerospace Enterprise (DAE) Ltd announced on Wednesday that its leasing division DAE Capital has signed three agreements to sell 16 aircraft with a total market value of approximately $900 million.

The aircraft covered by these agreements include Boeing 737 and Airbus A320, A330, and A350 family aircraft, have an average age of two years and are currently on lease to 11 airlines in 11 countries, the company said in a statement.

Firoz Tarapore, CEO of DAE, said: “This divestment activity will help us optimize our portfolio composition and monetize some of our recent larger-scale investments. This transaction does not impact our total number of customers.

"Proceeds will be used to pay down debt and reinvested to support our ambitious growth plans. Proactively managing our portfolio through active trading is a critical component of our long-term portfolio strategy and it is important for us to remain relevant in all segments of the secondary market for aircraft sales.”

These agreements are expected to close in the second half of 2018, he added.

Last week, DAE announced that it had signed a landmark unsecured four-year revolving credit facility with an initial commitment of $480 million which could be increased to up to $800 million.

The facility included both conventional and Islamic tranches and will support the future financing needs of the business.

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