Dubai Aerospace Enterprise Ltd (DAE) tightened the spread on its benchmark sized seven-year bond, which was upsized to $600 million at 120 basis points over US Treasuries from initial price thoughts in the T+145 bps area.
The Regulation S senior unsecured Eurobond has a 4.95% coupon, with a 5.137% yield and a re-offer price of 98.912.
The orderbook was in excess of $2 billion.
The Dubai-headquartered aviation services firm, rated Baa2 (Stable) by Moody’s and BBB (Stable) by Fitch, will issue the bond under DAE Funding LLC’s Global Medium Term Note Programme with an expected rating of Baa2 by Moody’s and BBB by Fitch.
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.
The bond will be listed on Nasdaq Dubai.
In October, DAE raised $650 million from a five-year sukuk at a 4.50% semi-annual coupon, drawing robust investor demand that saw final order books top $1.85 billion.
(Writing by Bindu Rai, editing by Seban Scaria)
bindu.rai@lseg.com
