The deal will be split between an equally-sized term loan and a revolving credit facility, which are expected to be priced at around 200 basis points above libor (London interbank offered rate).

DAE was established in 2006 to build the emirate’s capabilities in aerospace manufacturing, financing, education and servicing.

In mid-July, the firm said it was buying 18 planes from Emirates Airline in a sale and leaseback deal. In the same month, Dubai Aerospace Capital, DAE’s leasing arm, confirmed a $12.6bn order for 100 new Airbus planes.

The cash will be used to refinance existing debt and for continued expansion of the business.