CDB Aviation has priced a five year dual tranche offering of senior unsecured notes totalling $700 million through its subsidiary CDBL FUNDING 1, the company said on May 27, 2025.
“This marks CDB Aviation's return to the international bond market after a four-year hiatus,” said CDB Aviation CEO Jie Chen.
The offering, priced on May 20, 2025, consists of a $400 million senior fixed rate notes. This tranche has a 4.750% coupon, priced at Treasuries plus 75 basis points, which tightened 40 basis points from its initial guidance.
The second tranche consists of $300 million senior floating rate notes, priced at SOFR plus 80 basis points, which tightened 50 basis points from initial guidance.
The company said the bond attracted strong demand from a broad base of global investors, with the orderbook peaking at over $4bn and final allocations to approximately 100 institutional accounts.
Chen added: "This issuance is a key milestone in executing our long-term funding strategy. By diversifying our funding sources, optimising our debt structure, and having a better matching of assets with our liabilities, we are positioning CDB Aviation for sustainable, long-term growth.”
The notes were issued under its $3bn medium term note programme.
Standard Chartered Bank, Morgan Stanley, Goldman Sachs (Asia), China CITIC Bank International, China Securities International, and Bank of China acted as joint global coordinators, joint lead managers, and joint bookrunners. Additional joint lead managers and bookrunners included HSBC, China Everbright Bank Hong Kong branch, Credit Agricole CIB, Industrial Bank Hong Kong branch, DBS Bank, and China Minsheng Banking Hong Kong.
The company also completed a mandate to deliver one A321neo aircraft from its orderbook to a new European customer and Greek flag carrier, Aegean Airlines.
Chen commented: “This will be another well-suited member of Aegean's growing fleet, providing the level of efficiency and comfort that is aligned with the carrier's ongoing efforts to continuously improve its services and innovate to meet the evolving needs of its passengers.”
The mandate was first disclosed in September 2023.