SMBC Aviation Capital Completes US$2 Billion Bond Offering

SMBC Aviation Capital has completed a US$2 billion senior unsecured bond offering, its largest capital markets transaction since launching its bond program in 2016.

The offering comprised three-year, five-year and 10-year notes with coupons of 4.95%, 5.20% and 5.70%, respectively, resulting in a weighted average coupon of 5.27%. The notes were more than six times oversubscribed, with peak investor demand exceeding US$13 billion, and were priced at spreads of 70, 85 and 112 basis points over U.S. Treasuries.

The transaction marks SMBC Aviation Capital’s twelfth bond issuance and further strengthens the lessor’s funding platform by providing long-term access to diversified debt capital. The notes are fully and unconditionally guaranteed by SMBC Aviation Capital.

The strong investor demand highlights continued confidence in the company’s business model and credit profile as it continues to support aircraft acquisitions and long-term growth.