CALC announces share capital increase of HK$320 million

HONG KONG – China Aircraft Leasing Group Holdings Limited (CALC), the largest independent operating aircraft lessor in China, announced today that it has entered into subscription agreements with not less than six independent professional, institutional or other investors relating to the subscription of a total of 40,000,000 new shares to be allotted and issued by the Group.

The agreement is subject to a lock-up period of 12 months, which shows the investors’ commitment to CALC’s long-term success. The subscription price per new share is HK$8.00 and represents a discount of approximately 10.11% to the HK$8.90 closing price of the CALC share on the Hong Kong Stock Exchange on 26 August 2016.

“The strong interest from investors is a reflection of market’s confidence in CALC’s unique business model and sustainable growth prospects,” said Mr. Chen Shuang, Chairman and Chief Executive Officer of CALC. “To support the Group’s international business expansion, we have been exploring different innovative financing alternatives including the ongoing arrangements of structured rental realisation transactions and the issuance of two USD bonds recently. The issue has further strengthened CALC’s financial muscles and broadened our capital base, which enable us to capture the large growth opportunities that we currently see in the market and to facilitate our future development.”

The share subscriptions will result in gross proceeds of HK$320,000,000. The net proceeds after deduction of the relevant expenses are expected to be approximately HK$319,700,000, which the Group intends to use for new aircraft acquisitions, financing the aircraft disassembly centre, business expansion in aircraft and related businesses, and general corporate purposes.

Following the completion of the transaction, CALC’s outstanding number of share will increase from 626,646,640 to 666,646,640 shares. The new shares will represent 6.00% of the total issued shares of CALC enlarged as a result of the transaction, while China Everbright Limited and Friedmann Pacific Asset Management Limited (and its associates) remain the largest shareholders with a 32.48% and a 28.80% stake respectively. The subscription agreement is subject to customary conditions precedent including permission for listing of new shares on the Stock Exchange.