News
BOC readies for May IPO in Hong Kong to be followed by two other Chinese lessors by year end
April 29th 2016
BOC Aviation, the Singapore-headquartered leasing arm of the Bank of China, officially announced an initial public offering (IPO) in Hong Kong on Monday. Read More » The lessor expects to begin taking orders by mid-May and start trading by the end of the month. BOC plans to raise up to HK$11.7 billion ($1.5 billion) from the IPO.
The company posted a net profit of $343 million last year, up 11% year-on-year. Its total revenue increased 10%, to $1.09 billion, with assets now at $12.5 billion. BOC Aviation, led by CEO Robert Martin, has a portfolio of 270 owned and managed aircraft that are leased to 62 airlines in 30 countries.
Also this week, BOC Aviation announced it has delivered the first of three A320ceos to ANA Holdings’ low-cost subsidiary, Vanilla Air.
China Development Bank (CDB) Leasing and Minsheng Financial Leasing are expected to float their respective Hong Kong IPOs in the second-half.
China Aircraft Leasing Group Holdings Limited (CALC) became the first listed aircraft lessor in Asia in July 2014, also on the Hong Kong Stock Exchange. This Friday, CALC launched and priced its first U.S. dollar bond in an aggregate principal amount of $300 million, due in 2019. The unrated and unsecured bonds will bear interest of 5.9% per annum, payable semi-annually in arrears, commencing November 6. The lessor plans to use the proceeds for pre-delivery payments, financing and new aircraft acquisitions and overall business expansion.
