Dubai Aerospace Enterprise Ltd. is seeking a $2.1 billion-equivalent loan, according to people familiar with the matter, in another sign of Asian banks’ willingness to lend to certain borrowers in the Middle East, despite the continuing conflict in Iran. Bank of China Ltd, Emirates NBD, Oversea-Chinese Banking Corp., Industrial and Commercial Bank of China Ltd., and China Construction Bank (Asia) Corp. are the mandated lead arrangers and bookrunners on the seven-year deal. The proceeds will be used for general working capital.
The deal will have two tranches, one denominated in dollars and the other in United Arab Emirates dirham. The greenback tranche could be priced at 110 basis points over the Secured Overnight Financing Rate, and the local currency portion at 95 basis points over the Emirates Interbank Offered Rate. DAE is one of the largest aircraft lessors globally and is owned by the Investment Corporation of Dubai, the emirate’s main investment arm.
The DAE loan highlights the key role Asian banks continue to play in the region, even as tensions in Iran remain high and Saudi Arabia faces attacks from Yemen’s Houthi militants. Last year, the region received more than $17 billion from Asian lenders, a record high and triple the amount in 2024, according to Bloomberg-compiled data.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing