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Dubai Aerospace Enterprise (DAE) has priced its $650 million 5-year sukuk at a 4.50% semi-annual coupon, drawing robust investor demand that saw final order books top $1.85 billion, excluding joint lead managers (JLMs).
The reoffer price was of 99.505, equating to a yield of 4.612% and a spread of 90 basis points over US Treasuries (UST).
Initial price thoughts (IPTs) were in the T+125bps area.
The Reg S/144A senior unsecured sukuk is structured under a Wakala/Murabaha format.
The issuance was conducted under DAE Sukuk (DIFC) Ltd’s Trust Certificate Issuance Programme under its $2.5 billion and will be listed on Nasdaq Dubai.
DAE, which is fully owned by the Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai, has annual revenue of $1.7 billion and aircraft assets of $14.5 billion. It has total debt of $9.8 billion, according to investor documents.
(Writing by Brinda Darasha; editing by Daniel Luiz)
