BOC Aviation announced that it has closed a self-arranged term loan totalling US$1.5 billion with 21 banks globally. The five-year transaction is the largest term loan the Company has signed to date, exceeding the US$1.375 billion term loan that the sompany signed in October 2023. The transaction comprises two facilities provided to BOC Aviation and BOC Aviation (Ireland).
DBS Bank Ltd. acted as the Global Coordinator and Documentation Agent with The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch, acting as Facility Agent for the transaction. The term loan also saw BOC Aviation adding three new banks to our strong lending group of financial institutions. The proceeds will be used for general working capital purposes, capital expenditure and refinancing of existing debt.
“The support we have received from our panel of banking partners, both current and new, has enabled us to complete the transaction at highly competitive pricing. The term loan, which was oversubscribed, demonstrated the banking market’s confidence in the Company’s credit and strong financial performance,” said Chan Mui Sin, Head of Treasury, BOC Aviation.
BOC Aviation is a global aircraft operating leasing company with a portfolio of over 800 aircraft and engines owned, managed and on order. Its owned and managed fleet was leased to 92 airlines in 48 countries and regions worldwide as at 31 December 2024. BOC Aviation is listed on the Hong Kong Stock Exchange (HKEx code: 2588) and has its headquarters in Singapore with offices in Dublin, London, New York and Tianjin.
Avolon boosts fleet in Q1
Lessor Avolon issued a first quarter update and said it acquired 115 aircraft including closing the acquisition of Castlelake Aviation Limited, increasing its delivered fleet to 639 owned and managed aircraft. The company it sold 34 aircraft and ended the quarter with 66 aircraft agreed for sale and ended the quarter with an owned, managed and committed fleet of 1,096 aircraft, including orders and commitments for 457 fuel-efficient, new technology aircraft. Avolon also said it placed 15 aircraft from its orderbook ending the quarter with 97% of its orderbook placed for the next 24 months. The company also said it raised US$850 million senior unsecured notes due 2030, with proceeds used to repay secured debt and placed on review for upgrade by Moody’s (Baa3), Fitch (BBB-) also on positive outlook.
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