Press Release

BOC Aviation Launches Initial Medium Term Note

16 Sep 2010

BOC Aviation has successfully closed its first issuance under a US$300 million multicurrency medium term notes (“MTN”) programme with an initial issue of S$45 million in one year notes at a coupon of 2%.  This is the first time the Company has tapped the debt capital markets as BOC Aviation since Bank of China acquired Singapore Aircraft Leasing Enterprise in December 2006 and renamed the Company BOC Aviation in July 2007. 

Commenting on the transaction, Mr. Phang Thim Fatt, Deputy Managing Director & Chief Financial Officer of BOC Aviation, said he is very pleased with the market’s affirmation of BOC Aviation’s experience and expertise in aircraft leasing as evidenced by the attractive funding rate.  “BOC Aviation is well capitalized with a 17-year track record of delivering solid profits.  As funding costs account for a significant percentage of an operating lessor’s total cost, we will continue to explore different sources of financing to maintain our competitive edge.”

DBS acted as arranger for the programme and was lead manager and sole dealer for the initial issue.  Proceeds from this issue will be used for general corporate purposes.  The strong interest reflected confidence in the Company with subscriptions from institutional and individual investors, ranging from income funds, asset managers and private banks subscribing on behalf of high net worth individuals. 

BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 161 modern aircraft operated by airlines worldwide. In addition, the company has 37 aircraft on firm order and another four aircraft on committed purchase and leasebacks.  BOC Aviation has one of the youngest fleet in the industry with an average aircraft age of four years.

BOC Aviation is 100% owned by Bank of China, one of the ten largest banks in the world*.

*Based on market capitalization as at 30 June 2010.

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For more information, please contact:

Elsie Ng
Tel: +65 9710 0790
[email protected]
www.bocaviation.com