SMBC Aviation Capital secures $1.5 Billion Syndicated Financing, and expands global banking partnerships.
SMBC Aviation Capital, a prominent aircraft leasing company, has successfully secured a 5-year global syndicated finance facility, raising US$1.5 billion from 29 financial institutions. This deal marks a significant achievement in the company’s efforts to diversify its banking relationships, with 40% of the funding originating from new lenders. Moreover, the facility boasts a 75% revolving credit capacity, providing substantial operational flexibility for SMBC Aviation Capital. This enables the company to effectively meet its business needs across various operational scenarios.
Aisling Kenny, Chief Financial Officer, SMBC Aviation Capital, said, “This transaction represents a further milestone in our syndicated banking programme and demonstrates our ability to raise large scale, competitively priced capital. The deal is global in nature and further increases the diversification of our banking relationships, as we welcomed 13 new banking partners as part of the syndication. The revolving credit facility which forms 75% of this transaction will provide further operational flexibility for the future liquidity needs of SMBC Aviation Capital.”
SMBC Aviation Capital successfully raised US$1.5 billion from 29 financial institutions, including 13 new banking relationships. The senior syndication phase involved 10 banks, while an additional 19 banks participated in the general syndication phase. The syndicated finance facility consists of a US$375 million term loan and a US$1.125 billion revolving credit facility. Notably, banks from America, Asia, Australia, Europe, and the Middle East made significant contributions to its establishment. Furthermore, these contributions were pivotal in establishing the financial structure of the facility, ensuring broad regional participation and support.
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Headquartered in Dublin, Ireland, SMBC Aviation Capital ranks among the world’s largest aircraft lessors. The company’s high-quality global airline customer base primarily consists of narrow-body aircraft, constituting 83% of its portfolio. Additionally, 66% of the portfolio consists of new technology aircraft by net book value. With an extensive fleet exceeding 950 aircraft under ownership, management, and commitment, SMBC Aviation Capital demonstrates a robust capital position. Furthermore, It has earned strong credit ratings of A- from S&P and BBB+ from Fitch, highlighting the firm’s enduring business strength.
Q. – What is the amount raised by SMBC Aviation Capital through the syndicated finance facility?
A. – $1.5 billion.
Q. – How many financial institutions participated in the syndication?
A. – 29.
