China Aircraft Leasing Group (CALC) has delivered the final three A320ceo to South African Airways, it said on September 26, 2024. The lessor said the new aircraft mark "the introduction of the youngest A320" to the airline's fleet.
The company's subsidiary China Asset Leasing Company (CALC (TJ)) has issued its sustainability-linked perpetual medium-term notes with a term of two+N years, amounting 1bn Chinese yuan ($142.6 million). The company said it attracted a subscription application of 1.58x with a coupon of 2.7%. Its last bond issuance was in the first half of this year.
"This fully demonstrated CALC (TJ)'s fund-raising ability as a leading lessor in China's aviation finance market, and the widely recognition of its commitment to sustainable investment and green finance development," said the company in a statement.
A spokesperson for the company said proceeds from the perpetual MTN will be used to supplement working capital, to repay existing interest-bearing debts. In addition, it will support green aviation-related businesses, including the introduction of new-generation aircraft with high fuel efficiency and upgrading older aircraft.
China credit rating agencies China Cheng Xin International Credit Rating and China Dagong International Credit Rating rated the issuer AAA, with a stable outlook. In addition, Dagong International gave the notes an AAA rating.
"The positive market response with a competitive coupon rate reflected the long-term support from investors of CALC (TJ) which allowed the company to capitalise on strong market demand and favourable market conditions," it added.
The notes were under CALC's RMB medium term note programme. CSC Financial was the lead underwriter and bookrunner for this offering while the joint lead underwriters for the offering were Guotai Junan Securities and China Bohai Bank.