Press Release

BOC Aviation Re-Opens and Increases its Existing Offshore RMB Bond

21 Nov 2013

*NOT FOR DISTRIBUTION IN THE UNITED STATES*
 
 
 

BOC Aviation Pte. Ltd. ("BOC Aviation") today successfully priced a RMB500 million re-opening of the existing RMB 1 billion 4.5% Senior Unsecured Notes due November 2018 (the "Notes"), to tap into unfilled investor demand. The re-opened issuance was more than seven times subscribed with orders exceeding RMB3.8 billion.

Carrying the same coupon rate of 4.5% per annum and the same maturity date of 20 November 2018 as the existing bonds, the additional RMB500 million in new Notes were priced to yield 4.387% p.a., with interest payable semi-annually in arrears.

Following the re-opening, the new total deal size for the Notes will be RMB1.5 billion. The additional Notes were jointly arranged by BOC International, HSBC and Standard Chartered Bank. Settlement for the additional Notes will be 29 November 2013, subject to the satisfaction of customary closing conditions.

The unsecured notes will be listed on SGX-ST and will be will be rated A- by Fitch Ratings and BBB- by Standard & Poor’s Ratings Services.  BOC Aviation will apply the net proceeds to fund the Company’s new capital expenditure, and for general corporate purposes.

Orders for the notes were received from 68 high quality fixed income accounts. In terms of geographic distribution, the notes were distributed 69% in Hong Kong, 24% in Singapore, 7% in other countries and regions. In terms of allocation, 63% will go to asset managers and fund managers, 28% to private banks and banks, 7% to insurers and sovereign funds, and 2% to corporate and others.

Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation, commented, “Following the robust response for our first offshore RMB bond issuance , we are pleased to have been able to broaden our investor base through the bond re-opening. The ability to build out the size of our 5-year offshore RMB bond demonstrates the strong credit standing of BOC Aviation and establishes a strong base for future fund raising by the company.”

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 102 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 9710 0790
[email protected]
www.bocaviation.com