M
NU
Press Release

27

Mar

2015

CALC Places HK$892.1 million Convertible Bonds
Investment from Top Asset Management Companies
Increased Stake by China Everbright in Essence

[27 March 2015 – Hong Kong] China Aircraft Leasing Group Holdings Limited (“CALC” or the “Group”, stock code: 01848.HK) is pleased to announce that the Group has entered into subscription agreements with China Everbright Financial Investments Limited (“China Everbright”), Huarong (HK) International Holdings Limited (“Huarong International”) and Great Wall Pan Asia International Investment Company Limited (“Great Wall”) in relation to HK$387.90 million, HK$387.90 million and HK$116.37 million convertible bonds respectively, the aggregate principal amount is HK$892.17 million. The support from two reputable institutional investors Huarong International and Great Wall, as well as the virtual increase in stake holding from our controlling shareholder CEL are significant recognition of the Group’s investment value, demonstrating the capital market’s confidence in the Group’s sustainable business model and growth potential.


Details of the placing agreements are set as follows:

Date
26 March 2015 (Thursday)
Aggregate principal amount
HK$892.17 million
Maturity date
3 years
Coupon Interest
3% per annum
Conversion price
HK$11.28 per share
(a premium of approx. 5.2% over the closing price of HK10.72 per share on 26 March 2015)
Number of new shares issuable
79,093,083 new shares
(representing approx.13.49% of the existing issued share capital; and approx. 11.89% of the enlarged issued share capital after the issuance of the new shares)
Net proceeds
Approximately HK$875.45 million
Use of proceeds
Aircraft acquisition

 

Dr. Xiong Hao, Deputy General Manager of Business Development Department at Huarong (HK) International Holdings Limited said, “As one of the largest asset management companies in China, investment is our expertise. Targeting CALC’s competitive edge as the forerunner amongst China’s operating lessors, we have paid close attention to the Group’s development since its listing. China's aviation industry is still emerging with enormous room for growth. This investment opens up a channel for us to participate in the growth of the fast-expanding aviation industry of China. The cooperation with CALC will also accelerate the Group’s development in the domestic industry by filling the gaps as well as capturing foreign markets, which will maximize the return on investment and create a win-win situation. We are very pleased to have this excellent opportunity to collaborate with CALC and seize the huge opportunities of China's aviation industry.” 

 

Mr. Gao Yuhong, Managing Director of Great Wall Pan Asia International Investment Company Limited, said, “We highly acknowledge CALC’s vision of to become the most scalable one-stop aircraft solutions provider in Asia. With CALC’s clear development blueprint and the bright prospects of China's aviation industry, we are much honoured to capture this investment opportunity. We are looking forward to sharing the fruits of the industry’s development with CALC.”
Mr. Chen Shuang, Chief Executive Officer of China Everbright Limited and Chairman of CALC, said, “As a controlling shareholder, we are very pleased to seize this investment opportunity with two large institutional investors. CALC has a unique positioning and aggressive development pipeline. From its listing, additional purchase of 100 Airbus aircraft, to the upcoming establishment of the aircraft disassembly center, CALC has reached series of milestones in only half a year or so, which significantly increased shareholders’ value. Our subscription of the convertible bonds represents a testimony to our confidence in CALC’s development prospects and our unyielding support. We believe that with the financial support from various investors, CALC is bound to develop rapidly and elevate to become the most scalable one-stop aircraft solutions provider in the region.”

 

Dr. Mike POON, Chief Executive Officer of CALC, said, “Huarong International and Great Wall are both recognised as China’s top four asset management companies; it is an important recognition for the Group’s investment value to have support from such sizable institutional investors. While the investment from our controlling shareholder, CEL, further demonstrates their confidence in the prospects of CALC. The issuance and successful placing of the convertible bonds will bring CALC sufficient funds for aircraft purchase, as well as expedite the development of our aircraft leasing business and achieve our short-term goal to expand the fleet to 100 aircraft by the end of 2016. In addition, the placing also illustrates CALC’s flexible and diversified financing channels; while optimising the Group's shareholders base at the same time.”

Media Contact

China Aircraft Leasing Group Holdings Limited

Corporate Communications Department