DAE locks in new financing for liquidity boost

Dubai Aerospace Enterprise (DAE) lined up USD 2.8 bn in unsecured revolving credit facilities, it said in a press release. The 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.

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

The timing matters: The lessor is siphoning liquidity at a time when parts of the aviation market are coming under pressure from the regional war. Rising ins. and energy costs, coupled with mounting war-risk premiums, are beginning to strain smaller lessors and airlines. This pressure could potentially open doors for larger players like DAE to pick up aircraft at more attractive prices. DAE has also been on an acquisition spree as of late, making a USD 7 bn play for Macquarie AirFinance just last month and acquiring Nordic Aviation Capital in May for USD 2 bn.

That’s a wrap on the Borouge-Borealis merger

Borouge-Borealis merger crosses the finish line: Adnoc has finalized the merger of its plastic unit Borouge with Austria-based oil and gas player OMV’s Borealis, according to a disclosure (pdf). Earlier this week, Borouge Group International picked up Adnoc’s stake in Borouge, giving it a controlling stake at 90% ahead of a wider merger.

The bigger picture: Last year, Adnoc and OMV agreed to merge their polyolefins businesses into Borouge Group International, which is set to be a USD 60 bn platform made up of Borouge, Borealis, and Canada-based Nova Chemicals. The merger is slated to be finalized by the end of this month, and Adnoc and OMV recently said they will start operating and marketing volumes from the new Borouge 4 complex, saving funds through an at-cost usage fee structure rather than buying the facility straight away.

Alterra moves into digital infrastructure with Wireless Logic

Alterra backs UK-based IoT firm: The UAE’s USD 30 bn climate investment vehicle and ADGM-based Alterra is investing in Wireless Logic, an Internet of Things (IoT) connectivity platform, according to a press release. Alterra partnered with US-based General Atlantic’s climate-focused fund BeyondNetZero on the investment, which also came through Alterra’s Opportunity Fund.

What does Wireless Logic do? UK-based Wireless Logic provides secure communication tools for industrial devices like EV chargers, agricultural sensors, and industrial machinery. The capital backing will be used to help scale its emissions-reduction solutions across energy-intensive sectors.

ICYMI- Earlier this year, Alterra announced plans to launch a climate co-investment vehicle, the USD 1.2 bn Alterra Opportunity Fund, in partnership with Spain’s financial services group BBVA. The fund focuses on investments in North America, Latin America, and Europe.

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