Marketing

SMBC Aviation raises €412m through bond issue


Aircraft lessor SMBC Aviation has raised $500 million (€412 million) through a bond issue, the Irish company said on Tuesday.

Dublin-based SMBC confirmed that it had closed the sale of $500 million in seven-year unsecured bonds repayable at 2.3 per cent.

SMBC said that the placement, at US Treasury rates plus 1.1 per cent, represented the lowest credit spread ever achieved in a bond issue by the company.

The firm will use the cash raised for general purposes, possibly including buying aircraft and repaying existing debt.

International credit ratings agencies S&P and Fitch recently confirmed SMBC’s investment grade A rating.

Barry Flannery, SMBC’s chief financial officer, dubbed the bond sale a “strong endorsement” of the company’s strength.

“As our airline customers now increasingly focus on the recovery and the pent-up demand for travel, we are positioned to capitalise on what will be a period of substantial change and opportunity ahead for the wider sector,” he said.



READ SOURCE

See also  Businesses must deal with post-Brexit trade ‘challenges’ – Barnier

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.