3.54 PM Friday, 29 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:56 06:10 12:26 15:53 18:37 19:52
29 March 2024

Qatar Aviation launches $650m loan

Published
By Reuters

Qatar Aviation Leasing, set up to purchase aircraft and lease them to Qatar Airways, has launched syndication of a $650 million (Dh2.38 billion) loan via Deutsche Bank and Standard Chartered Bank, banking sources said.

The deal is the first Gulf loan to launch this year.

The three-year loan is fully underwritten and pre-funded, and includes a sovereign guarantee, the sources said. It carries a margin of 250 basis points (bps) over Libor, which is seen as generous given that Qatar five-year credit default swaps are priced at 115 bps. "The pricing is way above what a State of Qatar guarantee should be priced at," one of the sources said.

Abu Dhabi Government-owned Mubadala Development Company, meanwhile, is in talks with banks to refinance its $2 billion syndicated loan that matures in April.

 

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.