BOC Aviation offers US$500m senior unsecured notes at 2.375%

The group is raising funds for various corporate expenditures.

Aircraft operator BOC Aviation has issued US$500 million in five-year fixed rate senior unsecured notes due 15 September 2021 as it raises reserves to fund the company’s capital expenditure, refinancing of existing borrowings, and other general corporate purposes.

According to BOC, the notes were issued under the company’s US$5 billion Global Medium Term Note program. The joint bookrunners for the issue were BNP Paribas, BOC International, Citigroup, DBS Bank Ltd., The Hongkong and Shanghai Banking Corporation Limited, J.P. Morgan, and Wells Fargo Securities.

“We were delighted by the response to the offer, which was many times subscribed, with investor appetite ensuring even tighter pricing than our last five-year Rule 144A/Regulation S bond issuance at the end of March 2015,” said Robert Martin, CEO of BOC Aviation.

The notes, which will bear a fixed interest coupon of 2.375% per year with interest payable semi-annually in arrear, will be listed on SGX-ST, and are rated BBB+ by S&P Global Ratings and A- by Fitch Ratings.