Press Release

BOC Aviation Prices its First 10-Year Offshore RMB Bond

19 Feb 2014

BOC Aviation Pte. Ltd. ("BOC Aviation") has priced a private placement of RMB300 million of 10-year senior unsecured fixed rate notes (the “Notes”). This is first 10-year offshore RMB bond issued by BOC Aviation and the first to be issued by an aircraft operating lessor.

The transaction, arranged by DBS Bank Ltd., was issued off BOC Aviation’s US$2 billion Euro Medium Term Note Programme established in September 2012.  The sale of the Notes is expected to close on 26 February 2014, subject to satisfaction of customary closing conditions. 

The Notes were priced at par and will bear a fixed interest coupon of 5.5% per annum with interest payable semi-annually in arrears. BOC Aviation will utilise the proceeds for funding of its new capital expenditure, general corporate purposes and refinancing of existing borrowings. The Notes will be listed on the SGX-ST.

Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation, said, “This is our first 10-year offshore RMB issuance and the first 10-year offshore RMB bond by an aircraft operating lessor, and continues BOC Aviation’s track record as a leader and innovator in financing for our industry.  We will continue to tap the debt capital markets to support our growth strategy. This is especially true as Asian capital markets continue to open up.”

BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 233 owned and managed aircraft operated by more than 50 airlines worldwide and another 95 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 is 100% owned by Bank of China. 
 

*******
 

*NOT FOR DISTRIBUTION IN THE UNITED STATES*

Not for publication or distribution, directly or indirectly, to any U.S. person or in or into the United States or in any other jurisdiction in which such publication or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.