China Aircraft Leasing Group (CALC) has raised $160 million through the issuance of senior unsecured notes due in 2028, marking its first return to the US dollar bond market since 2021.
The notes carry a fixed coupon of 6% and were oversubscribed 4.35 times, reflecting strong investor demand.
The issuance follows CALC’s receipt of a long-term Ag- credit rating with a stable outlook from China Chengxin (Asia Pacific) Credit Ratings and was priced at the tightest spread the company has achieved to date in the US dollar bond market.
Initial price guidance was set at 6.4% before tightening to the final 6%, signalling robust investor confidence in the company's creditworthiness and financial fundamentals. Investors included banks, brokers, securities firms, and asset managers from Hong Kong, Mainland China, Singapore, and France.
China CITIC Bank International and BNP Paribas acted as joint global coordinators, joint bookrunners, and joint lead managers. additional joint bookrunners and joint lead managers included China Zheshang Bank (Hong Kong Branch), Industrial Bank (Hong Kong Branch), CMBC Capital, CITIC Securities, and China Industrial Securities International.
Other joint lead managers were Guoyuan Securities (Hong Kong), Guotai Junan International, China International Capital Corporation, China Securities International, ICBC International, and CNCB Capital.
“The re-entry into the US dollar bond market is strategically important for CALC. It enables us to capture strong investor demand under favourable market conditions, enhances our financial flexibility, and reinforces CALC’s credit profile in the international capital markets,” said Conrad Li, Executive Director, CFO and Chief Strategy Officer of CALC.
CALC’s previous US dollar bond issuance was fully repaid at maturity in late 2024, following a full tender offer launched in 2023 as part of the company’s liability management strategy.