DUBAI, March 28 (Reuters) - Dubai Aerospace Enterprise (DAE), a government-controlled company, is raising a $400 million loan arranged by Ahli Bank of Kuwait, sources familiar with the matter said.
DAE has become one of the world’s largest aircraft lessors after acquiring Dublin-based AWAS last year. The acquisition tripled the Dubai aircraft leasing and maintenance company's portfolio to about 400 aircraft worth more than $14 billion.
The new loan, which is being syndicated to banks, includes a revolving credit facility and a working capital facility. It could be increased to $600 million, one of the sources said.
DAE could not immediately be reached for comment.
Chief Executive Firoz Tarapore told Reuters on Oct. 16 that the company planned to issue sukuk, or Islamic bonds, by the middle of 2018, as part of a strategy to diversify funding.
The company issued $2.3 billion in senior bonds split across three tranches last year, to partly finance the AWAS acquisition. The bonds included $500 million of 4 percent notes due in 2020, $800 million of 4.5 percent bonds due in 2022 and $1 billion of 5 percent bonds due in 2024.
DAE plans to change its capital structure to include a higher percentage of unsecured debt, Tarapore told Reuters in October, and plans to be a regular debt issuer in the U.S. debt market. (Additional reporting by Alexander Cornwell, editing by Louise Heavens)