Press Release

Pricing of BOC Aviation’s US$500 Million 2.875% Five Year Senior Unsecured Notes

27 Sep 2012

*NOT FOR DISTRIBUTION IN THE UNITED STATES*

 
BOC Aviation Pte. Ltd. ("BOC Aviation") today announced that it has priced its debut US$ 500 million 2.875% Five Year Senior Unsecured Notes due 2017 (the "Notes").

The transaction was issued off BOC Aviation's US$2 billion Euro Medium Term Note Programme ("EMTN Programme”) and was approximately 8 times subscribed with an orderbook aggregating US$4 billion.

The Notes will be denominated in US dollars, and will bear a fixed interest coupon of 2.875% p.a. and a yield of 2.978% p.a., representing a spread of 2.35% p.a. over the 5-year US Treasury note, with interest payable semi-annually in arrears. BOC Aviation will apply the net proceeds to fund its new capital expenditure, for general corporate purposes and/or refinancing existing borrowings.

In terms of geographic distribution, the Notes were distributed 81% in Asia and 19% in Europe and Middle East. The Notes were distributed to 170 high quality fixed income accounts: 47% to asset and fund managers, 28% to banks, 19% to private banks and 6% to insurance companies.

Mr. Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation, commented, “We are very pleased with the positive response for the debut issue under our EMTN Programme after meeting investors in Hong Kong, Singapore and London. Following this successful issue, we plan to gradually increase the proportion of our financing from the debt capital markets over the next few years.”

BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 194 owned and managed aircraft operated by airlines worldwide and another 60 aircraft on firm order. The Company has one of the youngest fleets in the industry with an average owned aircraft age of less than four years.

This announcement does not constitute an offer to buy, or a solicitation of an offer to sell, any Notes and no such offer, solicitation, purchase or sale shall be made in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful.

The Notes have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state of the United States or other jurisdiction and may not be offered, sold, pledged or otherwise transferred within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities law.

This announcement may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the Issuer’s current view on future events.

The value of the Notes, and the income derived from them may fall as well as rise. An investment in the Notes is subject to investment risks, including the possible loss of the principal amount invested.FSA/ICMA Stabilisation applies.

The past performance of BOC Aviation is not necessarily indicative of the future performance of BOC Aviation.

For more information, please contact:

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