CALC Issues First Tranche of Corporate Bonds

Hong Kong – 11 June 2019, CALC (the “Group”, SEHK stock code: 01848), a full value-chain aircraft solutions provider for the global aviation industry, is pleased to announce that the Group’s wholly-owned subsidiary, China Asset Leasing Company Limited (“CALC (TJ)”), has successfully issued its first tranche of corporate bonds at the nominal value of RMB 1 billion, with a term of three years and at a fixed coupon rate of 5.2%. China Merchants Securities is the lead underwriter and bookrunner for the transaction, while CITIC Securities is acting as the joint-underwriter. The main purpose is to provide supplemental funding for developing the Group’s aircraft full value-chain solution business, including but not limited to aircraft acquisition and purchasing of aircraft materials.

CALC initially planned to issue the bonds at RMB 500 million to RMB 1 billion. The first tranche of corporate bonds was conclusively issued at the nominal value of RMB 1 billion and was twice oversubscribed. Both the issuer and the corporate bonds were rated AA+ by China Cheng Xin International Credit Rating Co Ltd, which once again recognizes CALC’s integrated capability in terms of asset quality, business model, professional operational ability and positive development prospects. The issuance of this tranche of corporate bonds is another milestone for the Group’s fundraising projects, further proving the Group’s financing capability after previously signing an unsecured revolving syndicated loan of USD 840 million in Hong Kong.

Winnie LIU, Deputy CEO and Chief Commercial Officer, said, “The Group has been striving to develop both its domestic and international financing platforms over the years, as well as exploring more diversified funding channels to secure sufficient capital in support of its business development. These corporate bonds will broaden the Group’s domestic financing platform further, increasing the flexibility of financing, and lowering capital costs. This issuance also attracted mainstream financial institutions including domestic large-scale banks, insurance asset managers, and market investors to subscribe, reflecting the high level of recognition from the capital market and relevant authorities of CALC, its outstanding business foundation and its future development prospects.”