CDB Aviation has secured a five-year $710 million unsecured term loan facility through its wholly owned Hong Kong entity CDB Aviation Hong Kong under a sustainability-linked loan (SLL) structure.
“This term loan marks a major milestone for our platform, with our Hong Kong entity being appointed as the borrower for the very first time to enter into an SLL to raise substantial funds from the market,” said CDB Aviation CEO Jie Chen.
The parameters for the SLL structure include reducing the carbon intensity of the fleet, focussing on fuel-efficient aircraft and increasing the share of new generation aircraft in the fleet.
The facility was financed by a group of MLA banks, Bank of China, Industrial and Commercial Bank of China (Asia), Bank of Communications, Sydney Branch, Bank of Communications, China CITIC Bank International, Industrial and Commercial Bank of China London Branch, Ping An Bank, and CTBC Bank.
“Our continued success in attracting top-tier financiers reinforces our position as a premier global lessor with the strongest credit rating among the top 10 lessors and showcases the market's confidence in our long-term strategy,” said Chen. “We continue to strengthen our cost of capital and position our platform for sustainable profitability.”
Bank of China acted as facility agent and facility coordinator and its Hong Kong branch as well as Industrial and Commercial Bank of China acted as mandate lead arranger, bookrunner.
Credit Agricole acted as sole sustainability agent and lead sustainability structuring advisor.
Bank of China (Hong Kong), Industrial and Commercial Bank of China London Branch and China CITIC Bank International acted as sustainability structuring advisors.