CDB Aviation has priced its single-tranche $500 million unsecured notes offering through its wholly owned subsidiary CDBL FUNDING 1.
The five-year fixed rate notes were priced at treasuries plus 50 basis points. The notes have a 4.25% coupon, which tightened 45 basis points from its initial price guidance.
Proceeds will be used for working capital and general corporate purposes.
“The issuance reflects our ongoing efforts to optimize our capital structure and enhance our competitiveness, underscoring the CDB Aviation team’s unwavering commitment to our long term vision,” said CDB Aviation CEO Jie Chen.
CDB Aviation said the deal had strong demand from a broad base of investors, with the orderbook peaking at over $2.36bn from over 100 institutional accounts.
The notes were issued under its $3bn medium term note programme, which is rated A2 by Moody's and A by Fitch.
Fitch gave the notes an A rating. The ratings agency said the rating is in line with CDB Aviation's long-term issuer default rating (IDR).
“The notes also benefit from a keepwell and asset purchase deed provided by CDB Leasing,” said Fitch.
Standard Chartered Bank, China CITIC Bank International, HSBC, Goldman Sachs (Asia), Bank of Communications, and China Securities International acted as joint global coordinators, joint lead managers, and joint bookrunners.
Additional joint lead managers and bookrunners included Bank of China, Shanghai Pudong Development Bank (Hong Kong Branch), Industrial Bank (Hong Kong Branch), Deutsche Bank, and Huaxia Bank (Hong Kong Branch).