Singapore-based aircraft leasing firm BOC Aviation is eyeing a fifth US-dollar-denominated bond issuance, sources tell Airfinance Journal.
BOC Aviation says it “has no comment” on the matter.
The proposed five-year issuance is said to be very similar to a January 2020 $400 million unsecured listing with a 2.625% coupon, for which BNP Paribas, Citigroup, Bank of China and HSBC acted as bookrunners.
If it materialises in the fourth quarter, it would be BOC Aviation’s fifth dollar-denominated issuance this year.
In September, the Singapore-based lessor issued a 10-year $750 million bond at a coupon of 2.625%, sold at a price of 99.782%, for which BNP Paribas, Bank of China, Citigroup, HSBC, JP Morgan, Mitsubishi UFJ Financial and DBS Bank were the bookrunners.
During the first half of 2020, BOC Aviation raised more than $2.1 billion in notes and $900 million in loans at below its 2019 average cost of funds.
Bank of China has provided BOC Aviation with a $2 billion committed unsecured revolving credit facility which matures in April 2022, of which $1.7 billion was unutilised as at 30 June 2020.
The cash and undrawn credit facilities of BOC Aviation gave it total available liquidity of $4 billion at 30 June 2020.
Yesterday, on 29 October, BOC Aviation’s Hong Kong-traded shares slumped by up to 6%, which Goldman Sachs said was likely the result of its exposure to embattled Air Asia, especially its ongoing legal dispute with Air Asia X.
BOC Aviation earlier in October filed an application in the High Court of Malaya to “intervene” in Air Asia X’s proposed debt restructuring scheme, said the Malaysian carrier.
AAX said BOC Aviation filed the injunction on 14 October, a week after the carrier announced it was asking its unsecured creditors to write down a notional sum of MYR63.5 billion by 99.7% to MYR200 million, without offering them any equity in the airline, or promises of fresh capital from the owners.
Airfinance Journal first reported in September that BOC Aviation had filed a $23 million claim against AAX over missed lease rentals for four Airbus aircraft.