SMBC Aviation Capital Closes $500 Million Senior Unsecured Notes Offering and Announces Financial Results for the Fiscal Year Ended 31 March 2016

News provided by

SMBC Aviation Capital

20 Jul, 2016, 11:30 IST

DUBLIN, July 20, 2016 /PRNewswire/ --

-Debut bond provides even greater diversity of funding sources- 

-Revenue surpasses $1bn for the first time- 

SMBC Aviation Capital, one of the world's leading aircraft leasing companies, today announced that its wholly-owned subsidiary, SMBC Aviation Capital Limited DAC, has closed the sale of $500 million of its 2.65% senior unsecured notes due 2021 (the "Notes").  The Notes are fully and unconditionally guaranteed by SMBC Aviation Capital.  Proceeds from the offering will be used for general corporate purposes, which may include, among other things, the purchase of aircraft and the repayment of existing indebtedness.

SMBC Aviation Capital also today announced its financial results for the fiscal year ended 31 March 2016, with revenue surpassing $1billion[1] for the first time in the company's history.  

  • Revenue of $1,046 billion (2015: $ 906 million), an increase of 15%
  • Operating profit of $530 million (2015: $ 433 million), an increase of 22%
  • Aircraft assets in excess of $10.2 billion, comprising 297 owned and 145 managed aircraft
  • Fitch Ratings and Standard & Poor's affirmed the company's long-term issuer default rating at BBB+, meaning it is one of the highest rated aircraft lessors in the industry
  • $600m Revolving Credit Facility entered into with a consortium of five major banks during the year
  • Order placed for 10 Boeing 737 MAX 8s, bringing order book to 205 aircraft, comprising 110 A320neo, 90 B737 MAX 8 and 5 A321ceo aircraft
  • Completed 57 aircraft deliveries, including SMBC Aviation Capital's first B787-8 Dreamliner
  • Concluded 45 new lease agreements, sold 27 owned and managed aircraft and added 12 new customers

Commenting on the news, Peter Barrett, CEO of SMBC Aviation Capital, said: "Today's announcement illustrates our commitment to diversifying our sources of funding, and clearly demonstrates the market's confidence in our growth plans.  

I am also pleased to report a strong financial performance for the year, with revenue surpassing the $1 billion mark for the first time in our history. We have continued to expand our business across the world, particularly in Asia, which is a testament to both the strength of our strategy as well as our position as a global leader in this sector.  

We are optimistic about our growth prospects over the longer term.  The continuing support of our shareholders, combined with our focus on our customers and providing them with the most technologically advanced aircraft, mean that we are well positioned to drive future growth."  

Note to Editors 

About SMBC Aviation Capital 

SMBC Aviation Capital is the world's third largest aircraft lessor, with over 100 airline customers in 43 countries.  As of 31 March 2016, the company owns, manages and is committed to purchase 660 aircraft.  Established in 2001, the company rebranded to SMBC Aviation Capital in 2012 following its acquisition by a consortium comprising two of Japan's biggest companies SMFG and Sumitomo Corporation.

This communication and the information contained herein is not an offer to sell securities in the United States.  Securities may not be offered or sold in the United States unless registered pursuant to the U.S. Securities Act of 1933, as amended, or exempt from such registration requirement.  Any public offering of securities to be made in the United States will be made by means of a prospectus that will contain detailed information about our company and management, as well as financial statements. No money, securities or other consideration is being solicited by this communication or the information contained herein and, if sent in response to this communication or the information contained herein, will not be accepted. 

[1] - Results for the period relate to SMBC Aviation Capital, its subsidiaries and affiliate group companies.

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