DAE Secures $800 million in Loans and Credit
Dubai Aerospace Enterprise (DAE) has arranged $800 million in loans and revolving credit to fund “general corporate purposes.” The fresh capital, available on a three-year term, has come from a group of banks including Citibank, Deutsche Bank, Emirates Bank International, Lloyds TSB Bank and Noor Islamic Bank.
Since its establishment in 2006, DAE has made a succession of investments in areas such as aerospace engineering, aircraft maintenance and leasing as part of its goal to develop a $15 billion portfolio. The company draws support from state-backed investors including the Investment Corporation of Dubai, Dubai Silicon Oasis, DIFC Investments, Istithmar World, Emaar and Dubai International Capital.
After years of seemingly limitless growth, signs that even the Dubai economy may be somewhat constrained by fallout from the worldwide financial crisis have surfaced. In December, the government disclosed a budget deficit for the first time ever and financial institutions have recently been revising downwards their forecasts for some of the emirate’s investment funds. DAE itself declined to comment on whether it requires the fresh funds to replace capital that was to have come from existing investors or whether the new money will be used to finance airliners ordered by its DAE Capital leasing arm.