Aircraft Leasing company SMBC closes $500m bond sale

Fourth successful capital raising for business

Photograph: iStock

Photograph: iStock

 

Aircraft leasing company SMBC Aviation Capital has closed a $500 million (€442 million) sale of senior notes, its fourth successful capital raising.

The sale of the 3.55 per cent five-year senior unseured bonds was undertaken by the company’s wholly-owned subsidiary, SMBC Aviation Capital Finance. The notes, which are due in April 2024, are fully and unconditionally guaranteed by SMBC Aviation Capital.

This proceeds from the offering will be used for general corporate purposes, which could include the purchase of aircraft and the repayment of existing debt.

Chief financial officer Barry Flannery said it was another endorsement from the market of SMBC Aviation Capital’s strategy and long-term growth prospects. “The pricing achieved proves that our quality portfolio and long track record combined with our strong balance sheet and future prospects are compelling and differentiating factors for us, and this transaction is another significant milestone in the development of our third-party funding plans for the business,” he said.

The successful sale follows last year’s announcement that the company had received an A- rating from S&P, making it the joint highest rated lessor in the industry.