DAE delivers second Boeing 777 Freighter to Emirates SkyCargo
Wednesday, 17 June 2009

Dubai, DAE Capital, the aircraft leasing financial business arm of Dubai Aerospace Enterprise (DAE), handed over the second Boeing 777 Freighter to Emirates SkyCargo last week. Six more Boeing 777 Freighters are expected to be delivered to DAE between 2009 and 2014.

Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airlines and Group said: "Emirates has been satisfied with the performance of the Boeing 777F since it joined our fleet. It is proving to be the most efficient freighter operating today, while its modern technologies and competencies will benefit our operations for years to come."

DAE has also secured a US$450 million Guaranteed Loan Facility from Citibank, N.A. to fund the purchase of 9 aircraft from Boeing with delivery dates between June 2009 to April 2010. The Export-Import Bank of the United States will guarantee 100% of the principal and interest. In the near future, DAE also plans to issue a capital markets note to replace the borrowing from this facility and further diversify its funding sources.

H.E. Dr. Omar bin Sulaiman, DAE Group Managing Director, said: “This transaction helps DAE pave the way to fund its aircraft purchase commitments for the next twelve months. It will also allow us to access a different investor base for our obligations and build our distribution strategy.”

"Operating lessors such as DAE are an important distribution channel for U.S.-manufactured aircraft, and Ex-Im Bank is pleased to support these transactions on behalf of the U.S. aerospace industry. Our financing of these Boeing 777 and Boeing 737-800 aircraft for DAE will help to maintain jobs at The Boeing Company, GE Aircraft Engines, aircraft-engine manufacturer CFM International Inc. and their many suppliers throughout the United States," said Ex-Im Bank's Transportation Division Vice President Robert Morin.

Citi Managing Director, Global Aviation, Munawar Noorani said: “Citi is delighted to deepen its relationship with DAE and looks forward to combining Citi's leading position in arranging US Ex-Im financing with our capital markets expertise to support DAE and explore alternative funding sources for US Ex-Im bank guaranteed debt.” DAE Capital’s fleet currently comprises 35 single aisle and wide-body aircraft. Furthermore, it has an additional 26 aircraft contracted of which 17 are on a purchase and lease back basis. DAE Capital has committed to invest in a fleet portfolio with an estimated market value of $27 billion that will gradually encompass 100 Airbus A320 family and A350 XWB aircraft, and 100 Boeing 737 Next Generation aircraft and wide-body planes, which will commence delivery in 2010.

Source: Press Release (Dubai Aerospace Enterprise)