Fitch Ratings has assigned an expected rating of 'A+(EXP)' to CDB Leasing US$3 billion medium-term note (MTN) programme set up under CDBL Funding 1.
Fitch has also assigned an expected rating of 'A+(EXP)' to the senior unsecured US dollar notes to be issued by CDBL Funding 1 under the programme in October 2017.
The proposed notes will be guaranteed by CDB Aviation Lease Finance Designated Activity Company (CDBALF) with a keepwell deed and deed of asset purchase undertaking provided by CDB Leasing.
Under the programme, CDBL Funding 1, an offshore special purpose vehicle (SPV) wholly owned by CDBALF, can issue MTNs either guaranteed by CDB Leasing or guaranteed by CDBALF with a keepwell deed and deed of asset purchase undertaking provided by CDB Leasing.
CDBALF became a direct wholly owned subsidiary of CDB Leasing in late 2016. The ultimate parent of both CDBALF and CDB Leasing is China Development Bank Corporation (CDB, A+/Stable). The programme and the proposed notes will be listed on the Hong Kong Stock Exchange and the proceeds will be used for the CDB Leasing group's working capital and for general corporate purposes. The maturity structure will be finalised upon settlement. The final rating is contingent upon the receipt of final documents conforming to the information already received.