SMBC Aviation Capital's wholly owned subsidiary SMBC Aviation Capital Finance has closed a $500 million five-year 5.10% senior unsecured notes on April 2, 2025.
The bond placement is priced at US Treasuries plus 103 basis points for the five-year tranches. It is the company's 10th successful bond offering following its debut capital markets issuance in July 2016.
“Our latest bond offering received strong demand, reflecting SMBC Aviation Capital's continued robust performance and compelling offer to investors,” said SMBC Aviation Capital CFO Aisling Kenny. “Our ability to access attractive funding at competitive pricing reinforces our balance sheet, and together with the backing of our shareholders, allows us to further capitalise on opportunities to support our growth.”
The funds raised will be used for general corporate purposes, which may include, amongst other things, the purchase of aircraft and the repayment of existing debt.
SMBC said the $500 million raised demonstrates the importance of the company's bond programme to its capital structure, allowing access to debt at different points of the tenor curve. The company added that the “continued success” of its bond offering programme “underlines investor appetite" for exposure to the business, as well as strengthening its financial position.
The transaction was led by JP Morgan and supported by other bookrunners including SMBC Nikko, Goldman Sachs, Citi, Credit Agricole (CACIB), and Royal Bank of Canada.