Cathay United Bank Acts as Joint Lead Arranger in US$3.7 Billion SMBC Aviation Capital Financing

TAIPEI, May 18, 2026 /PRNewswire/ -- Cathay United Bank Singapore Branch has further strengthened its position in the international syndicated loan market by acting as a joint lead arranger in a landmark financing transaction for SMBC Aviation Capital, one of the world's largest aircraft leasing companies. The transaction secured US$2 billion in commitments from mandated lead arrangers and bookrunners and was subsequently upsized to a total of US$3.7 billion . Supported by strong market demand, the transaction ultimately attracted participation from 40 Taiwanese and international financial institutions and achieved an oversubscription rate of 85%, demonstrating Cathay United Bank's strong syndication capabilities and solid reputation in the international financial market.

The financing consists of a seven-year tranche of approximately US$1.4 billion and a five-year tranche of approximately US$2.3 billion. Proceeds will support the business development and strategic investments of SMBC Aviation Capital, including its recent investment in Sumisho Air Lease, further strengthening its global aircraft leasing services. Acting as a joint lead arranger, the Singapore Branch coordinated participation from relationship banks across Asia and Europe, reflecting strong confidence in the company's operating strategy and long-term growth prospects.

Established more than 25 years ago, SMBC Aviation Capital is one of the world's leading aircraft leasing and aviation asset management companies, with extensive expertise in aircraft leasing, financing, and fleet management. The transaction also marks the company's first unsecured seven-year syndicated financing, representing an important strategic milestone in strengthening its long-term capital structure.

The Singapore Branch stated that the transaction is highly representative, not only highlighting Cathay United Bank's long-term and stable funding capabilities in large-scale international transactions, but also underscoring its deep expertise in cross-border financing and aviation finance. Going forward, Cathay United Bank will continue leveraging its extensive experience in cross-border financing to support SMBC Aviation Capital's global expansion strategy.

SMBC Aviation Capital noted that the transaction represents a significant milestone for the company, further deepening cooperation with its core banking partners. The company also expressed appreciation for the support provided by Cathay United Bank and the broader banking syndicate, which contributed to the successful completion of the syndicated financing. The financing will support the continued expansion of its global aircraft leasing business while establishing a strong and flexible capital foundation.

Cathay United Bank has long expanded its international presence, and participation in this syndicated loan through its Singapore Branch further reinforces its strategic position in cross-border syndicated lending, aviation finance, and transportation finance. As the aviation market continues its steady recovery and demand for fleet renewal rises, Cathay United Bank will continue enhancing its regional capabilities and professional financial services to serve as a trusted financial partner for corporate clients pursuing international expansion.

SOURCE Cathay United Bank