M
NU
Press Release

29

Apr

2016

CALC Launches USD300 million Guaranteed Bonds
Broadens International Financing Channels Supporting Globalisation Strategy

Hong Kong – 29 April 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 first USD bond in an aggregate principal amount of USD300 million due 2019. The unrated and unsecured bonds will bear an interest of 5.9% per annum, payable semi-annually in arrear, commencing on 6 November 2016. The bonds are irrevocably and unconditionally guaranteed by the Company.

 

It is CALC’s largest debt raising exercise to date. The estimated net proceeds of the proposed bonds Issue will amount to approximately USD 296.5 million. CALC intends to use the net proceeds for pre-delivery payment (PDP) financing and new aircraft acquisitions, financing the aircraft disassembly centre, business expansion in aircraft and related business as well as general corporate purposes.

 

Mr. Chen Shuang, CEO and Chairman of CALC said, “CALC has always been actively exploring different alternatives to increase its working capital and improve liquidity. Following the placement of convertible bonds in Hong Kong and the medium-term notes issuance in China last year, we have tapped the international bond market for the first time, establishing another significant option to obtain long-term financing from international investors. These new financing arrangements, together with the Group’s aircraft lease receivables realisations, and the support from various investors and financiers, CALC’s diversified financing channels underpin our globalisation strategy. We are seeing increasing demand for aviation-related investment globally and are set to develop innovative ways to raise fund and seek for long-term and sustainable growth in China and international markets. ”

 

China Everbright Bank Co., Ltd., Hong Kong Branch, DBS Bank Ltd. act as the joint global coordinators, joint bookrunners and joint lead managers of the bonds issuance, and BOCOM International Securities Limited and CEB International Capital Corporation Limited as joint lead managers.

Media Contact

China Aircraft Leasing Group Holdings Limited

Corporate Communications Department