Hong Kong – 1 November 2017, CALC (the “Group”, SEHK stock code: 01848), a full value-chain aircraft solutions provider for global airlines, is pleased to announce that the Group recently closed its first unsecured syndicated loan (the “Loan”), which does not limit the usage of proceeds to certain designated aircraft, and enables flexible delivery schedules for clients when the Group plan to purchase aircraft from various manufacturers.
The Loan was launched at USD175 million, and closed at USD425 million after receiving an overwhelming market response. The tenor of the Loan was 4.5 years. The purpose of this syndicated loan will be used to finance or refinance part of Pre-Delivery Payments (“PDP”) to be made for aircraft acquiring.
Mr. Barry Mok, Deputy CEO and Chief Financial Officer of CALC said, “CALC is delighted with the reception of the syndicate banks to the deal, and is particularly pleased to see that more financial institutions to get into the aviation finance sector, reflecting their growing knowledge and confidence in the aircraft leasing industry. CALC has been one of the first companies to complete an aircraft transaction in Hong Kong through the newly established leasing platform. This loan again showcases our leadership position in providing flexible arrangements and it is the first large-scale PDP syndicated loan after Hong Kong’s Legislative Council passed a new tax regime for the industry.”
“CALC has once again put itself at the forefront of financing innovation in the aircraft leasing industry through the closing of this unsecured syndicated loan,” Mr. Mike POON, Chief Executive Officer of CALC, added. “The arrangement is the latest example of CALC’s efforts to facilitate the aircraft leasing industry’s development and support Hong Kong’s journey towards becoming a competitive leasing hub in the global aircraft leasing sector. Together with our banking partners, we look forward to leasing more aircraft to global airlines in various flexible ways in the near future.”
Thirteen syndicated banks were involved in the Loan. China Everbright Bank, Hong Kong Branch and Industrial and Commercial Bank of China (Asia) Limited acted as the Mandated Lead Arrangers, Bookrunners and Underwriters. China Minsheng Banking Corp., Ltd. Hong Kong Branch and Chiyu Banking Corporation Limited acted as Mandated Lead Arrangers. Bank of Jiangsu Co., Ltd. Shenzhen Branch acted as the Lead Arranger. Bank of Communications Co., Ltd. Hong Kong Branch, The Bank of East Asia, Limited, Bank SinoPac Company Limited, Macau Branch, Chong Hing Bank Limited, Cathay United Bank Company, Limited, Hong Kong Branch, Mega International Commercial Bank Co., Ltd. Hong Kong Branch, EnTie Commercial Bank, and Taiwan Cooperative Bank Limited, Hong Kong Branch acted as Arrangers.