Dubai plane leasing firm DAE adds more banks to bond deal



By Yousef Saba

DUBAI, June 14 (Reuters) - Dubai Aerospace Enterprise (DAE), one of the world's biggest aircraft leasing companies, has added more banks to its planned sale of U.S. dollar-denominated bonds that would be its second this year, an investor presentation seen by Reuters showed.

DAE, owned by the Dubai government's main investment arm the Investment Corporation of Dubai, will issue bonds in tranches of three- and/or seven years to exercise a call option on bonds due next year and 2024, the presentation showed on Monday.

It will also use the proceeds from the new bonds for general corporate purposes. The bonds will be of benchmark size, which generally means at least $500 million.

A document from one of the banks on the deal seen by Reuters on Friday did not specify a tenor and said DAE hired BNP Paribas BNPP.PA , Credit Agricole CAGR.PA , Emirates NBD Capital ENBD.DU , JPMorgan JPM.N and Trust Securities TFC.N to organise fixed income investor calls on Monday.

More banks have been added to the deal, the investor presentation and a separate document from one of the banks showed.

Fifth Third Securities FITB.O , First Abu Dhabi Bank FAB.AD , Goldman Sachs International GS.N , HSBC HSBA.L , Mizuho Securities 8411.T , Morgan Stanley MS.N and Natixis CNAT.PA join the other banks as joint bookrunners and lead managers. Bank ABC, Commercial Bank of Dubai CBD.DU , Deutsche Bank DBKGn.DE and Gulf International Bank were hired as co-managers.

DAE posted a nearly 40% fall in profit in 2020 to $228.9 million from $377.5 million the previous year, a supplement for the new bonds seen by Reuters showed.

DAE's fleet comprises around 425 aircraft with a value of roughly $16 billion and an average fleet age of six years and an average remaining lease term of 6.8 years, the presentation 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 on an investor presentation seen by Reuters.

DAE raised $1.25 billion in a dual-tranche unsecured bond deal in January.


Reporting by Yousef Saba; Editing by Emelia Sithole-Matarise

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