• Sixth successful capital fundraising, and second bond placement of 2021, further strengthens company’s strong financial position
  • Offering priced at US Treasuries plus 93 basis points, tightest spread achieved to date

Dublin, 18 October 2021: SMBC Aviation Capital, one of the world’s leading aircraft leasing companies, today announced that its wholly-owned subsidiary, SMBC Aviation Capital Finance DAC, has closed the sale of $500 million principal amount of 1.900%, five-year senior unsecured notes due October 2026 (the “Notes”). The Notes are fully and unconditionally guaranteed by SMBC Aviation Capital.

This bond placement – priced at US Treasuries plus 93 basis points – represents SMBC Aviation Capital’s tightest spread achieved to date reflecting the fact that its bonds currently trade the tightest in the sector. This deal follows the company’s  seven-year, $500m bond issuance in June 2021.

Eithne Manning, Acting Chief Financial Officer, SMBC Aviation Capital, said: “This further bond issuance at an industry leading pricing further strengthens SMBC Aviation Capital’s strong liquidity position. Our ongoing strong shareholder support, together with our ability to access third party debt financing on market leading terms, is a key point of competitive differentiation. This additional financing means we are well positioned to capitalise on opportunities within an airline sector that is recovering from the pandemic.”

SMBC Aviation Capital is one of the top five aircraft lessors globally, with a fleet comprising 734 owned, managed and committed aircraft, as at 30th June 2021 and benefits from a close relationship with its shareholders Sumitomo Mitsui Financial Group and Sumitomo Corporation. SMBC Aviation Capital has a strong capital position and holds the joint highest credit rating out of all aircraft leasing companies, reflecting the long-term strength of its business.