Press Release

BOC Aviation Prices First Offshore RMB Bond

14 Nov 2013

*NOT FOR DISTRIBUTION IN THE UNITED STATES*
 
 
BOC Aviation Pte. Ltd. ("BOC Aviation") has priced its first offshore RMB-denominated bond. The coupon on the 5-year unsecured notes of RMB 1 billion is 4.5% p.a. The notes will close on 20 November 2013, subject to the satisfaction of customary closing conditions.

The transaction was issued off BOC Aviation's US$2 billion Euro Medium Term Note Programme originally established in September 2012 and was 3.5 times subscribed with an order book aggregating RMB3.5 billion. It was jointly arranged by BOC International, HSBC and Standard Chartered Bank.
 
The notes, denominated in offshore Chinese RMB, will bear a fixed interest coupon of 4.5% p.a., with interest payable semi-annually in arrears. The proceeds will be used to fund the Company’s new capital expenditure, and for general corporate purposes.

The unsecured notes will be listed on SGX-ST and will be rated A- by Fitch Ratings and BBB- by Standard & Poor’s Ratings Services.

Orders for the notes were received from 60 high quality fixed income accounts. In terms of geographic distribution, the notes were distributed 56% in Hong Kong, 27% in Singapore, 11% in Taiwan and 6% in Europe and others. In terms of allocation, 53% will go to private banks and banks, 26% to insurers and sovereign funds, 16% to asset managers and fund managers, and 5% to corporate and others.

Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation, said, “We are very pleased to have achieved another milestone, becoming the first global aircraft operating lessor to have issued offshore Chinese RMB-denominated notes. This further broadens our investor base into a new capital market, and continues with our strategy of diversifying our financing sources.”

BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 234 owned and managed aircraft operated by more than 50 airlines worldwide and another 101 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.

BOC Aviation, which is 100% owned by Bank of China, will be celebrating its 20th anniversary on 25 November this year. 
 

Not for publication or distribution, directly or indirectly, to any U.S. person or in or into the United States or in any other jurisdiction in which such publication or distribution would be prohibited by applicable law.

This announcement does not constitute or form part of any offer or solicitation to purchase or subscribe for securities. The securities referred to above have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws of the United States or any other jurisdiction. The securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or pursuant to an applicable exemption from registration under the Securities Act and applicable state or local securities law. No public offering of the securities will be made in the United States or in any other jurisdiction where such an offering is restricted or prohibited. A rating is not a recommendation to buy, sell, or hold securities and may be subject to suspension, reduction or withdrawal at any time by the rating agency. FCA/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:

Claire LEOW
Tel: +65 6325 9638
[email protected]
www.bocaviation.com