SMBC Aviation Capital closes $1.5bn senior unsecured bond offering

Dublin, 04 April 2024: SMBC Aviation Capital, one of the world’s leading aircraft leasing companies, today announces that its wholly owned subsidiary, SMBC Aviation Capital Finance DAC, has closed the sale of $1.5 billion five and ten-year senior unsecured notes at a principal amount of 5.30% and 5.55% respectively (the “Notes”). The Notes are fully and unconditionally guaranteed by SMBC Aviation Capital.

The bond placement – priced at US Treasuries plus 108 and 135 basis points for the five and ten year tranches respectively – represents SMBC Aviation Capital’s first dual tranche offering. It is the company’s ninth successful bond offering following its debut capital markets issuance in July 2016.

The $1.5 billion raised by SMBC Aviation Capital in the capital markets demonstrates the importance of the company’s bond programme to its capital structure, allowing access to debt at different points of the tenor curve. This latest transaction represents the company’s single largest bond issuance to date, underlining investor appetite for exposure to the business and further strengthens the company’s financial position.

Aisling Kenny, Chief Financial Officer, SMBC Aviation Capital, said:

“This issuance is the ninth bond offering by the business since the inception of our bond programme in 2016 and represents the single largest issuance in our company’s history. The size of the offering reflects the increased scale of our balance sheet which has more than doubled in size since 2020 thanks to the significant level of well-timed growth executed during this strategic point in the cycle. Our ability to access long-term debt at competitive pricing, together with the backing of our shareholders, will support our ability to further capitalise on the opportunities that will be presented by this strong market backdrop.”

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For more information please contact:

Conor Irwin, SMBC Aviation Capital                +353 87 381 6106

Dara O’Sullivan, SMBC Aviation Capital         +353 86 021 0135

Richard Webster-Smith, FGS Global               +44 20 7251 3801

For Investor enquiries, please contact:

Shane St Ledger, SMBC Aviation Capital        +353 86 173 0599

Note to Editors

About SMBC Aviation Capital  

SMBC Aviation Capital is the second largest aircraft lessor globally by number of aircraft and benefits from the strong support of its shareholders Sumitomo Mitsui Financial Group and Sumitomo Corporation. SMBC Aviation Capital has a high-quality global airline customer base with a portfolio comprising 83% narrow-body aircraft and 66% new technology aircraft (by net book value). SMBC Aviation Capital has a strong capital position and holds an A- and BBB+ rating with S&P and Fitch respectively, reflecting the long-term strength of its business.