SMBC Aviation Capital closes $500 million senior unsecured bond offering

- Successful capital fundraising represents a further endorsement by the market of the company’s financial resilience and ability to capitalise on the opportunities presented by current market conditions

- Offering priced at US Treasuries plus 110 basis points

Dublin, June 15, 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 2.300%, seven-year senior unsecured notes due June 2028 (the “Notes”).  The Notes are fully and unconditionally guaranteed by SMBC Aviation Capital.

This bond placement - priced at US Treasury plus 110 basis points, represents the lowest credit spread achieved in a bond issuance by SMBC Aviation Capital.  The proceeds from the latest offering will be used for general corporate purposes which may include, among other things, the purchase of aircraft and the repayment of existing indebtedness. The Company has recently had its investment grade A- ratings confirmed by S&P and Fitch.

Commenting on the issuance, Barry Flannery, Chief Financial Officer of SMBC Aviation Capital, said:

“The successful completion and industry leading pricing achieved on this transaction is a strong endorsement from the market for SMBC Aviation Capital’s financial strength and ability to capitalise on growth opportunities. Our strong credit ratings and diversified funding structure provides us with multiple options to execute on our growth plans. As our airline customers now increasingly focus on the recovery and the pent-up demand for travel, we are positioned to capitalize on what will be a period of substantial change and opportunity ahead for the wider sector.”