BOC Aviation has closed a self-arranged term loan, totalling $1.5bn with 21 banks globally, making this the largest term loan the company has signed to date.
The transaction involves two separate facilities extended to BOC Aviation and its Irish subsidiary, BOC Aviation (Ireland), and exceeds the $1.37bn term loan that the company signed in October 2023.
“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,” said Chan Mui Sin, head of treasury, BOC Aviation. “The term loan, which was oversubscribed, demonstrated the banking market’s confidence in the company’s credit and strong financial performance.”
DBS Bank acted as the global coordinator and documentation agent, with HSBC's Singapore branch acting as facility agent for the transaction. The term loan also saw BOC add three new banks to its lending group of financial institutions.
Just last week the lessor announced that it had placed a substantial aircraft order with both Airbus and Boeing for 120 narrowbody aircraft, comprising of 70 A320neo family aircraft and 50 737 MAX 8 jets.
A BOC spokesperson told Airline Economics that the company will use its “standard approach to funding deliveries” in order to finance the purchase of these 120 aircraft. This will be achieved through an unsecured blend of raises from banks and capital markets. BOC raised $5.5bn in these markets alone in 2024.