AVIC International leasing is in the market with a US dollar unsecured notes offering as part of its medium-term note (MTN) programme, which was issued last November.

The proposed notes issuance was rated "A-" by Fitch Ratings. The notes, which will be guaranteed by AVIC Leasing, will be listed on the Hong Kong Stock Exchange.

The offer is part of the Soar Wise MTN programme, which totals $1 billion.

Global co-ordinators are Agricultural Bank of China Hong Kong branch, Bank of China, BNP Paribas, DBS, Haitong International and ICBC.

Bank of Communications, China Industrial Securities International, ICBC International, Industrial Bank Hong Kong branch, Shanghai Pudong Development Bank Hong Kong branch and Zhongtai International were also on the senior trade as bookrunners and lead managers.

The 2022 paper was sold at a cash price of 99.989 and a yield of 3.504%, or a spread of 132.5bp over Treasuries. It holds a 3.5% coupon.

The order book held more than $1.9bn, including joint bookrunner interest, from 40 accounts at reoffer. About 98% of the transaction was allocated to Asian investors, and the other 2% to Europe. Some 77% went to banks, 21% to fund managers and insurers and 2% to others.

The Reg S paper was issued by Soar Wise and guaranteed by Avic. The issue is a wholly-owned subsidiary of CAVIC Aviation Leasing (Ireland), which in turn is wholly-owned by the state-owned guarantor. The A- rated notes come with a put option at 101 in the case of a change of control.

The proceeds from the Hong Kong-listed transaction will be used for working capital and general corporate purposes.