Singapore: BOC Aviation prices $750m notes due 2026

Singapore Exchange. Photo: Bloomberg

Singapore-listed aircraft operating and leasing firm BOC Aviation has issued $750 million in 10-year-old senior unsecured notes that will bear a fixed interest rate of 3.875 per cent per annum with interest payable every six months in arrears.

The company said in a filing that the proceeds will be used to fund capital expenditure, refinance existing borrowings or for general corporate purposes.

The notes, which are rated BBB+ by Standard & Poor’s Rating Services, and A- by Fitch Ratings, will be listed on the SGX-ST board. These notes will be due in 2026.

The transaction was issued under BOC Aviation’s $5 billion Global Medium Term Note programme, the company said.

“This is our first benchmark 10-year Rule 144A/Regulation S bond issuance under our GMTN program. We are pleased with the success of the transaction, which continues to build on our diversified investor base,” said Robert Martin, Managing Director and CEO at BOC Aviation.

The company, which is owned by the Bank of China, is based out of Singapore, and has offices in Dublin, London, Seattle and Tianjin. It has a portfolio of 270 owned and managed aircraft which it leases to 62 airlines in 30 countries, BOC Aviation said.

It also claims to have an order book of $3.2 billion, with strong interest coming from institutional funds, pension funds and insurers.

BOC Aviation is in the midst of seeking approval for its $1.5 billion initial public offering on the Hong Kong Stock Exchange.

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Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.