Dubai Aerospace Enterprise (DAE) today announced that it had restarted its bond repurchase program which it first introduced in 2018.
Since that date DAE has repurchased approximately US$485 million of principal amount of bonds and has remaining authorisation to repurchase a further approximately US$115 million.
DAE’s chief executive Firoz Tarapore said in a statement that the current trading levels of the firm’s bonds were not consistent with the firm’s balance sheet strength, credit ratings and liquidity position.
“We currently have five tranches of debt outstanding, and while the longer-dated maturity bonds are the most undervalued, we intend to repurchase available securities in each tranche at the appropriate price levels,” he said.
DAE currently has approximately US$2.8 billion of publicly traded bonds outstanding in the US capital markets.