14 April 2022, Tianjin – China Asset Leasing Company Limited (“CALC (TJ)” or the “Company”), a subsidiary of Hong Kong-listed China Aircraft Leasing Group Holdings Limited (“CALC” or the “Group”, HKEx stock code: 01848) today announced it had successfully issued RMB1.5 billion RMB medium-term notes with a coupon rate of 4.5% with a 2+1 years tenor (with an option of the issuer to adjust the coupon rate and the put option of the investor at the end of the 2^nd year).

This issue marked the largest single issuance of RMB bonds ever in the history of CALC (TJ), surpassing the RMB1.2 billion corporate bonds privately placed in February, reflecting investors’ broad recognition of  CALC (TJ)'s steady performance and  sufficient liquidity. The proceeds from this issuance will be applied to the repayment of maturing bonds. Together with the 3-year RMB1.2 billion corporate bonds issued in February, CALC (TJ) expects to reduce its net current liabilities by 27%*, which in turn helps the parent company CALC optimize its debt structure, significantly improving the Group’s net current liabilities by 35%*. At the same time, the Company is also exploring other financing channels to reduce short-term liabilities to further enhance its liquidity and boost its financial strength.

Coupled with the 3-year senior unsecured US dollar note issue by CALC at the end of 2021, successful completion of these three issuances of medium- to long-term bonds in both onshore and offshore markets within a short period of time also fully showcased the Company's fundraising capability as a pioneer and top player in  PRC aviation finance, and wide recognition of the Company as a high-quality issuer in onshore and offshore markets. In the future, CALC will continue to unleash in full edges in its onshore and offshore dual platforms and multiple financing channels, staying vigilant to changes in both markets, and continuing to improve profitability.

Since its establishment, CALC (TJ) has always been maintaining a strong track record in terms of financials and operations; and has introduced many pioneering investment products to the PRC aviation finance market. It is an industry leader in Dongjiang, Tianjin, the world's second largest aircraft leasing industry cluster. CALC (TJ) recently released its 2021 annual results, in which profits and assets grew steadily with total revenue reached RMB2.165 billion, and net profit grew by 18% year on year to RMB546 million. Its capital strength was further improved with both the registered capital and paid-in capital to US$1 billion. With 10 new cooperative financing institutions added, and CALC (TJ)’s diversified financing channels provide abundant liquidity to safeguard its business development needs. It delivered 19 aircraft during the period. As at 31 December 2021, CALC (TJ)’s fleet grew to consist of 93 aircraft, including 91 self-owned aircraft and 2 managed aircraft.

In addition, under the strategic guidance and strong support of the controlling shareholder China Everbright Limited, CALC (TJ) achieved a 100% utilization rate of its fleet despite challenges brought by Covid-19. The successful completion of this medium-term note issue further expands the direct financing channels of CALC (TJ) in the capital markets, establishing a firm footing for its future deep dive into the aviation market in China.

*Based on net current liabilities at the end of 2021, assuming other factors stay intact.