SMBC Aviation Capital has finalised a dual tranche seven-year and five-year global syndicated banking facility.
The transaction raised $2bn from seven financial institutions. These institutions are relationship banking partners for SMBC Aviation Capital based in Asia and Europe. The syndicated finance facility comprises a $1.5bn five-year tranche and a $500 million seven-year tranche.
The proceeds will be used to fund SMBC Aviation Capital's commitments under the Sumisho Air Lease transaction where it will acquire Air Lease.
“This transaction represents another successful milestone in our syndicated banking programme and further strengthens our relationship with seven of our key banking partners,” said SMBC CFO Aisling Kenny. "The closing of this transaction will provide an important source of capital for SMBC Aviation Capital as we look ahead to the closing of the Sumisho Air Lease transaction.
This marks the successful conclusion of the senior syndication phase of the transaction, with the general syndication phase expected to be launched shortly where additional banks will be invited to be participate in the facility.
“The inclusion of the 7-year tranche is particularly noteworthy as this represents the first time we have accessed unsecured capital from the syndicated banking market at this tenor,” Kenny said.
DBS Bank and Oversea-Chinese Banking acted as co-global coordinators and senior mandated lead arrangers and bookrunners. Taipei Fubon Commercial Bank and Fubon Bank (Hong Kong), CaixaBank, Cathay United Bank, and Industrial and Commercial Bank of China acted as senior mandated lead arrangers and bookrunners. Taishin International Bank acted as mandated lead arranger and bookrunner.