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SMBC aircraft leasing arm raises syndicated loan

Global / 10-04-18 / by
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SMBC Aviation Capital

SMBC Aviation Capital, an aircraft leasing company, has agreed on a US$600mn syndicated debt facility from a group of banks.

The package is comprised of a US$200mn term loan and a US$400mn revolving credit facility (RCF).

Citi acted as global co-ordinator, while there were eight mandated lead arrangers and bookrunners. These were ANZ, Apple Bank, Bank of China, Cathay United Bank, Citi, Maybank, OCBC and Westpac.

Both tranches have five-year tenors, with the finance to be used for general corporate purposes. The facility was launched into general syndication “to a limited set of investors”, according to a statement from SMBC Aviation Capital. This syndication is ongoing.

Barry Flannery, chief financial officer of SMBC Aviation Capital, says: “The level of interest in this transaction further demonstrates the market’s confidence in our business and our commitment to diversifying our funding sources. We are delighted to broaden our relationships with some of the leading banks in both the Asia Pacific region and in aviation generally. Together with our corporate bond programme and ongoing shareholder support, this will underpin the delivery of our future growth.”

SMBC Aviation Capital is among the largest aircraft lessors in the world. It has a portfolio of aircraft worth US$10.5bn, 248 of which are owned, 177 managed and 251 for which it has a commitment to buy.

It was previously known as RBS Aviation Capital before a 2012 takeover by Sumitomo Mitsui Banking Corporation (SMBC), Sumitomo Mitsui Finance and Leasing Company Limited (SMFL) and Sumitomo Corporation.

Last week, the company also announced it had raised US$1bn in funding in the form of a capital infusion from its shareholders. SMBC agreed to lend US$300mn to the leasing unit, with US$700mn coming in the form of equity, on a 50:50 basis from SMBC and SMFL.

SMBC Aviation Capital is headquartered in Dublin, which is the primary global hub for aircraft leasing companies.

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