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China Aircraft Leasing Group Issues USD300 million Five-year Bonds

Supporting its Globalisation Strategy with Diversified International Financing Channels

Aug 16, 2016

China Aircraft Leasing Group Holdings Limited (“CALC” or the “Company”, stock code: 01848.HK), the largest independent aircraft operating lessor in China, launched and priced its second USD bond in an aggregate principal amount of USD300 million due 2021. The unrated and unsecured bonds will bear an interest of 4.9% per annum, payable semi-annually in arrear, commencing on 22 February 2017. The bonds are irrevocably and unconditionally guaranteed by the Company.

The estimated net proceeds of the proposed bonds issue will amount to approximately USD297.4 million. CALC intends to use the net proceeds for new aircraft acquisitions, financing the aircraft disassembly centre, business expansion in aircraft and related businesses as well as general corporate purposes.

Mr Barry Mok, Deputy CEO and Chief Financial Officer of CALC, said, “CALC has always explored diversified financing channels in the capital market to enhance its working capital, improve liquidity, reduce costs and extend its debt maturity profile. Following our success in the first issuance of USD300 million three-year bonds with interest of 5.9% per annum in April 2016, the Group go further to launch USD300 million five-year bonds for the second time in less than four months. This deal takes advantage of favourable market conditions and the yield of this latest issue has been priced significantly lower than the previous one. Thanks to the support from Chinese and European investors, we built a peak order book in excess of USD1.2 billion. Of such investors, it accounts for 42%, 28%, 22% and 8% of fund management companies, banks, retail and corporate investors respectively. Asian investors accounts for 93% of the subscription. Not does only it reflect that investors are very confident of our business prospects and the credit quality of the Company, but it also allows us to expand our investor base by geography and represents a significant milestone in obtaining long-term financing from international investors.”

Mr Barry Mok added, “Together with our aircraft lease receivables realisation effort, these new financing arrangements underpin our globalisation strategy, and would improve our capital structure for our business expansion in China and globally. CALC would continue to develop innovative ways for its aviation-related investments to support its long-term and sustainable growth in China and international markets.”

China Everbright Bank Co., Ltd., Hong Kong Branch and DBS Bank Ltd. are engaged to act as the joint global coordinators, joint bookrunners and joint lead managers of the bonds issuance.

Supporting its Globalisation Strategy with Diversified International Financing Channels

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