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Dubai Aerospace plans sukuk issue by mid-2018
October 16, 2017 / 9:36 AM / a month ago

Dubai Aerospace plans sukuk issue by mid-2018

DUBAI, Oct 16 (Reuters) - Dubai Aerospace Enterprise (DAE) intends to tap the Islamic bond market within the next nine months as part of a strategy to diversify the company’s funding, its chief executive said on Monday.

The Dubai government-controlled company became one of the world’s largest aircraft lessors in August after acquiring Dublin-based AWAS.

DAE Chief Executive Firoz Tarapore told Reuters that the company intended to issue a sukuk “very soon”. Asked if that could take place by the middle of 2018, Tarapore answered “most definitely.”

He did not specify how much money the company could raise.

DAE wants to change its capital structure to include a higher percentage of unsecured debt, he said, and the company intends to be a repeat, benchmark issuer in the U.S. debt market. A benchmark issue conventionally means upwards of $500 million.

DAE raised $2.3 billion in the United States through a senior bond issue this year to finance its acquisition of AWAS. (Reporting by Alexander Cornwell; Editing by Andrew Torchia)

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