7th successful bond capital fundraising strengthens company’s financial position and highlights investor appetite for the business’s bond complex

Offering priced at US Treasuries plus 200 basis points with a peak orderbook of $6.3bn

Dublin, 5th May 2023: 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 $650 million principal amount of 5.450%, five-year senior unsecured notes due May 2028 (the “Notes”). The Notes are fully and unconditionally guaranteed by SMBC Aviation Capital.

The bond placement – priced at US Treasuries plus 200 basis points – represents SMBC Aviation Capital’s first bond issuance since October 2021 and first bond issuance since the acquisition of Goshawk Management Ltd. in December 2022. It is the company’s 7th successful bond offering following its debut capital markets issuance in July 2016 and emphasises the importance of the company’s bond programme in the business’s capital structure.

Aisling Kenny, Chief Financial Officer, SMBC Aviation Capital, said: “This bond issuance is the first bond offering by the business since late 2021. The strength and size of the orderbook for this issuance demonstrates the investor appetite for SMBC Aviation Capital and further strengthens our strong financial position. Our ongoing strong shareholder support, our ability to access debt financing from multiple funding avenues and our high-quality portfolio and customer base, continue to be key competitive advantages.”

SMBC Aviation Capital is the second largest aircraft lessor globally by number of aircraft and benefits from the strong support of its shareholders Sumitomo Mitsui Financial Group and Sumitomo Corporation. SMBC Aviation Capital has a high-quality global airline customer base with a portfolio comprising 82% narrow-body aircraft and 62% new technology aircraft (by net book value). SMBC Aviation Capital has a strong capital position and holds an A- and BBB+ rating with S&P and Fitch respectively, reflecting the long-term strength of its business.