Dubai Aerospace Enterprise, the biggest aircraft lessor in the Middle East, signed a four-year unsecured revolving credit facility that brings the company's total to $2.1 billion (Dh7.71), as it continues to grow its business.
The initial commitment of $535 million could be increased to $600m at any time after the initial closing, DAE said in a statement on Wednesday.
“This facility reinforces the strong availability of liquidity in the market and the confidence in DAE’s strategy and reputation,” said Firoz Tarapore, chief executive of DAE. “The addition of this facility substantially enhances our financial flexibility and provides yet another element of diversification to our funding strategy.”
DAE’s third quarter net profit grew nearly threefold to $95.9m from the same period in 2017, with results reflecting its acquisition of Irish company Awas. Revenues for the period increased to $354.7m from $246.3m.
In October, the company closed a $800m revolving loan facility it had signed in May.
The Dubai lessor plans to double its fleet of 365 planes over the next decade, following the acquisition of Awas in August last year. It is in talks with Boeing and Airbus for a narrow-body plane order of about 400 jets.
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In the Middle East – which, together with Africa and South Asia, represents more than a third of DAE’s client base – airlines will require 2,990 aircraft worth $754bn over the period, as passenger traffic in the region rises by an average of 5 per cent a year to 2035, according to the International Air Transport Association.
DAE's fleet comprised 365 aircraft as of September 30, 313 of them owned and 37 managed, it said. The company has also placed orders for 10 new aircraft from Airbus and Aerei da Trasporto Regionale, six of which are due for delivery by the end of the year. The lessor has commitments to purchase five aircraft from airlines, which are due for delivery by the end of 2018.
DAE's owned fleet has a book value of $11.9bn, excluding finance lease receivables as of the third quarter.
The lessor's top airline customers are Emirates, Gulf Air, Ethiopian Airlines, Saudia and Azul.