Middle East

Dubai plane leasing firm DAE sells $1 billion in bonds

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DUBAI, June 15 (Reuters) - Dubai Aerospace Enterprise (DAE), one of the world's biggest aircraft leasing companies, sold $1 billion in bonds due in August 2024 on Tuesday as it tapped the international debt markets for the second time this year, a document reviewed by Reuters showed.

The unsecured bonds were sold at 140 basis points (bps) over U.S. Treasuries, tightened from initial price guidance of around 175 bps over UST after they received more than $3.7 billion in orders, the document from one of the banks arranging the deal showed.

DAE, which will use the bonds for general corporate purposes, raised $1.25 billion in a two-tranche sale of unsecured bonds in January. It also sold $750 million in Islamic bonds in November.

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Gulf corporates have brought a string of bond issues to market this year as they seek to shore up finances hit by the COVID-19 pandemic's impact and lower oil prices.

Franklin Templeton estimated in a webinar on Monday that issuance by Gulf sovereigns would make up 30% of the oil-rich region's total this year from about 50% in each of the previous two years.

DAE posted a nearly 40% fall in profit in 2020 to $228.9 million, a supplement for the new bonds seen by Reuters showed.

It has available liquidity of $3.3 billion, with net debt of $8.5 billion and net debt-to-equity of 2.65 times. Nearly two-thirds of its debt is unsecured, and it aims to increase that gradually, its chief executive said during an investor presentation seen by Reuters. read more

BNP Paribas (BNPP.PA), Credit Agricole (CAGR.PA), Emirates NBD Capital (ENBD.DU), Fifth Third Securities (FITB.O), First Abu Dhabi Bank (FAB.AD), Goldman Sachs International (GS.N), JPMorgan (JPM.N), HSBC (HSBA.L), Mizuho Securities (8411.T), Morgan Stanley (MS.N), Natixis (CNAT.PA) and Trust Securities (TFC.N) arranged the deal.

DAE, owned by the Dubai government's main investment arm the Investment Corporation of Dubai (ICD), also hired Bank ABC, Commercial Bank of Dubai (CBD.DU), Deutsche Bank (DBKGn.DE) and Gulf International Bank as co-managers. read more

Dubai Islamic Bank, the United Arab Emirates' largest Islamic lender which is nearly 28% owned by ICD, also sold bonds on Tuesday, raising $1 billion via five-year sukuk. read more

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Reporting by Yousef Saba; Editing by Jacqueline Wong

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