[DAE FUNDING]

DAE Funding LLC "DUBAEE" (Baa3/NR/BBB-) hit the market today with US$1bn 144A/3c7/Reg S 3y sr notes due 8/1/24. Optional redemption: Issuer par-call on 01 July 2024 and any date thereafter up to (but excluding) the Maturity Date. Gtd by Dubai Aerospace Enterprise (DAE) Ltd. List Nasdaq Dubai. English Law. Settle 6/22 (T+5).

VIA BNP/CACIB/Emirates NBD Capital/JPM (B&D)/TSI joint active books.

FITB/FADB/GS/HSBC/Miz/MS/Natixis joint leads.

Co-mgrs: Bank ABC, Commercial Bank of Dubai, DB, Gulf International.

Announced overnight with benchmark size, we heard initial thoughts at T+175bp area.

IPTs were then revised to T+155a.

Final price guidance came in at T+140-145, wpir.

Ultimately, a $1bn deal priced at T+140bp:

PRICED: $1bn 1.55% 8/1/24 99.427 1.74%. T+140.

As for r/v, outstanding DAE Funding was quoted as follows:

DUBAEE 1.625% due 02/15/24 T+135bp (G140; $99.84) - $300m pxd 1/27/21
DUBAEE 2.625% due 03/20/25 T+141bp (G170; $101.51) - $500m pxd 1/12/21 +230
DUBAEE 3.750% due 02/15/26 T+170bp (G177; $105.53) - $750m pxd Nov 2020 (Sukuk)
DUBAEE 3.375% due 03/20/28 T+202bp (G210; $100.93) - $750m pxd 1/12/21 +275

Direct outstandings are a bit illiquid. However, the most liquid bond above is Mar 2028 at G210, and 3s/7s curves in the space are in the context of 55-60 (AVOL 24s below G138; AVOL '28s G192). Subtracting that from the DUBAEE '28s at G210 gets you to T+150-155bp f/v. At the T+140bp pricing level, CONCESSION IS NEG 12.5BP.

Comps away:

Avolon Holdings Funding Ltd (Baa3/BBB-/BBB-)
- AVOL 3.950% due 07/01/24 T+137bp (G138; $106.43) - $1bn pxd Apr 2019
- AVOL 2.125% due 02/21/26 T+163bp (G169; $98.72) - $750m pxd 1/13/21 +190
- AVOL 2.750% due 02/21/28 T+186bp (G192; $98.15) - $750m pxd 1/13/21 +215

Aercap Ireland (Baa3/BBB/BBB-)
- AER 3.150% due 02/15/24 T+95bp (G102; $104.70) - $900m pxd Sept 2020
- AER 1.750% due 01/30/26 T+126bp (G134; $98.69) - $1bn pxd 1/6/21 +155

Final book size was heard as $3.5bn.