Aviation Business News

SMBC Aviation Capital reports its largest bond issuance to date


Aircraft leasing company SMBC Aviation Capital has announced that its wholly owned subsidiary, SMBC Aviation Capital Finance DAC, has closed the sale of $1 billion 10-year senior unsecured notes at a principal amount of 5.70 per cent. The notes are fully and unconditionally guaranteed by SMBC Aviation Capital.

The transaction is the company’s largest bond issuance to date, underlining investor appetite and further strengthening the company’s financial position.

The bond placement represents SMBC Aviation Capital’s second bond issuance in 2023 after the successful issuance of five-year senior unsecured notes in May 2023.

It is also the company’s eighth successful bond offering following its debut capital markets issuance in July 2016.

SMBC Aviation Capital has raised $1.65 billion this year through its bond programme, which is crucial for the company’s financial structure.

Aisling Kenny, chief financial officer at SMBC Aviation Capital, said: “The strength and size of the orderbook for this issuance demonstrates the investor appetite for SMBC Aviation Capital at all points of the tenor curve.

“Our ability to access long-term debt at competitive pricing, along with our ongoing strong shareholder support, is a key competitive advantage for SMBC Aviation Capital.”

SMBC Aviation Capital is the second largest aircraft lessor globally by number of aircraft. It has a high-quality global airline customer base with a portfolio comprising 83 per cent narrowbody aircraft and 63 per cent new technology aircraft (by net book value).

(Picture above – Credit: SMBC Aviation Capital/LinkedIn)

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