BOC Aviation Mandates European Export Credit Agency and U.S. Ex-Im Bank Financings of Up to US$597 Million
08 Oct 2009
BOC Aviation has mandated Citigroup (“Citi”) to arrange financings guaranteed by the European Export Credit Agencies (“European ECAs”) and Export-Import Bank of the United States (“U.S. Ex-Im Bank”) of up to US$301 million and US$296 million respectively.
Financing for the facility guaranteed by the European ECAs (Coface of France, Euler Hermes of Germany and the Export Credits Guarantee Department of the United Kingdom) will be provided by Citi and will cover eight Airbus A320 family aircraft delivering from October 2009 through to March 2010.
Similarly, Citi will be providing the financing for the facility guaranteed by the U.S. Ex-Im Bank. Deliveries of the eight Boeing 737 Next Generation aircraft under this facility will commence from October 2009 through to February 2010. BOC Aviation will have the option to replace the initial financing with a U.S. Ex-Im Bank guaranteed capital markets issue at a later date if market conditions are attractive.
Commenting on the two mandates, Phang Thim Fatt, Deputy Managing Director and Chief Financial Officer of BOC Aviation, said “We are very pleased to receive support from both the U.S. Ex-Im Bank and European ECAs which demonstrates their confidence in BOC Aviation. They play a key role in our overall funding strategy, complementing financings from our banking group of 42 financial institutions and our parent, Bank of China.”
BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 127 modern aircraft operated by airlines worldwide. In addition, the Company has 64 aircraft on firm order and 11 on committed purchase and leasebacks for delivery through to 2013. BOC Aviation has one of the youngest fleets in the industry with an average aircraft age of less than four years.
BOC Aviation is 100% owned by Bank of China, the sixth largest bank in the world*.
*Based on market capitalization as at 30 September 2009.