Dubai Aerospace Enterprise (DAE) saw strong demand for its latest debt issuance, locking in USD 600 mn in a seven-year bond, Zawya reports. The orderbook was 3.3x oversubscribed with over USD 2 bn in bids, allowing the Investment Corporation of Dubai-owned lessor to tighten pricing by 25 bps from initial guidance to a spread of 120 bps over US Treasuries. The bonds carry a 4.95% coupon.

Why it matters: The strong appetite suggests that global investors are willing to lock into longer-dated paper in the UAE’s aviation sector, with relatively tight spreads despite geopolitical noise. While this issuance is slightly more expensive than DAE’s USD 650 mn sukuk issuance in October (at 4.5%), the depth of the orderbook suggests that DAE’s aggressive fleet expansion — which saw it acquire 17 planes and commit to 100 more from Airbus, Boeing, and ATR last year — has the full backing of international capital.

Traditional loans are also racking up: The aviation services secured a USD 300 mn three-year unsecured loan from Bank of China in June of last year.

What to watch for: The issuance is expected to be rated Baa2 by Moody’s and BBB by Fitch, in line with the group’s existing credit profile.

ADVISORS- Abu Dhabi Commercial Bank, Bank of China, BNP Paribas, Goldman Sachs International, and Mizuho were mandated as joint active bookrunners, alongside Bank ABC, Credit Agricole CIB, Emirates NBD Capital, Fifth Third Securities, First Abu Dhabi Bank, HSBC, JP Morgan, Morgan Stanley, Natixis, and Truist as joint passive bookrunners, and RAKBANK as co-manager.

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