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Thu 15 Nov 2018 01:55 PM

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Dubai's DAE triples Q3 profits, signs $720m credit facility

Dubai Aerospace Enterprise signs $720m revolving credit facility with a group of nine international banks

Dubai's DAE triples Q3 profits, signs $720m credit facility
The aircraft leasing firm said pre-tax profit for the same period totalled $333.5 million, up by 333 percent.

Dubai Aerospace Enterprise (DAE) Ltd on Thursday announced that it has signed a new unsecured $720 million revolving credit facility with a group of nine international banks based in US, Europe and Asia.

The credit facility has a maturity of five years.

Firoz Tarapore, CEO of DAE said: “This new revolving credit facility will significantly boost our liquidity profile and accord us enhanced flexibility to act expeditiously on market opportunities to acquire assets and grow our business.

"In October, DAE received its first investment grade rating of BBB+ and this strengthening of our liquidity profile and overall financial position is consistent with our publicly stated intent of achieving investment grade ratings from all major credit rating agencies.” 

The company also announced that its total revenue reached more than $1 billion for the first nine months of 2018, an increase of 124 percent.

The aircraft leasing firm said pre-tax profit for the same period totalled $333.5 million, up by 333 percent.

Results for the nine months included the results of the AWAS acquisition which was completed in August 2017, it added.

Tarapore said: “Our financial results reflect the strength of our franchise and our market position.

"This leading market position and our stellar financial results contributed to DAE being awarded an investment grade rating of BBB+ by KBRA and an upgrade from both S&P Global and Moody’s in recent months.”

During the first half of 2018, DAE purchased 15 aircraft, disposed of eight aircraft and closed a total of $774.5 million of borrowings in the first half.

DAE also announced the sale of 16 aircraft with a total market value of $900 million.

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