Dubai Aerospace Enterprise (DAE) has locked in USD 2.8 bn in unsecured revolving credit facilities (RCF), it said in a press release. The moves come just a few weeks after it made a USD 7 bn play for Macquarie AirFinance. The new financing — split between conventional and shariah-compliant tranches — replaces a smaller USD 1.4 bn facility, pushing DAE’s total revolving credit capacity to USD 4 bn through March 2031.

Why this matters

Could DAE be building out its war chest? The lessor is siphoning liquidity at a time when parts of the aviation market are coming under pressure from the regional war. With ins. and energy costs on the rise and war-risk premiums feeding through, smaller lessors and airlines are likely to feel the strain first — potentially opening doors for larger players like DAE to pick up aircraft at more attractive prices.

Meet the players

Who bought in: Fifteen global and local banks participated in the offering, including First Abu Dhabi Bank (FAB), Emirates NBD, and Abu Dhabi Islamic Bank, DAE said without disclosing the full list. The fact that they were willing to provide unsecured long-term financing also points to strong confidence in DAE’s balance sheet, even with regional risks in play.

Background

THE M&A CONTEXT- The move comes less than a month after DAE inked a definitive agreement for a USD 7 bn allcash takeover of Macquarie AirFinance, which would swell its combined fleet to over 1k aircraft. While the company frames the RCF as a general liquidity boost, the timing suggests the USD 4 bn in total capacity could serve as a primary liquidity bridge for the M&A transaction, which is due to close in 2H.

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