BOC Aviation Pte. Ltd. ("BOC Aviation") has priced its first offshore RMB*-denominated bond. The coupon on the 5-year unsecured notes of RMB 1 billion is 4.5 percent per annum. The notes will close on 20 November 2013, subject to the satisfaction of customary closing conditions.

The transaction was issued off BOC Aviation's $2 billion Euro Medium Term Note Programme originally established in September 2012 and was 3.5 times subscribed with an order book aggregating RMB 3.5 billion. It was jointly arranged by BOC International, HSBC and Standard Chartered Bank.

The notes, denominated in offshore Chinese RMB, will bear a fixed interest coupon of 4.5 percent per annum. with interest payable semi-annually in arrears. The proceeds will be used to fund the company’s new capital expenditure, and for general corporate purposes.

The unsecured notes will be listed on SGX-ST and will be rated A- by Fitch Ratings and BBB- by Standard & Poor’s Ratings Services.

Orders for the notes were received from 60  fixed income accounts. In terms of geographic distribution, the notes were distributed 56 percent in Hong Kong, 27 percent in Singapore, 11 percent in Taiwan and 6 percent in Europe and others. In terms of allocation, 53 percent will go to private banks and banks, 26 percent to insurers and sovereign funds, 16 percent to asset managers and fund managers, and 5 percent to corporate and others.

Robert Martin, managing director and chief executive officer of BOC Aviation, said, “We are very pleased to have achieved another milestone, becoming the first global aircraft operating lessor to have issued offshore Chinese RMB-denominated notes. This further broadens our investor base into a new capital market, and continues with our strategy of diversifying our financing sources.”

BOC Aviation is an Asia-based aircraft leasing company with a portfolio of 234 owned and managed aircraft operated by more than 50 airlines worldwide and another 101 aircraft on firm order. The Company has one of the youngest fleets in the industry with an average owned aircraft age of less than four years.

* What is an offshore RMB bond? Offshore Renminbi (“RMB”) bonds are fixed income  instruments denominated in Chinese RMB that trade  and settle outside of mainland China (offshore RMB  bonds traded in HK are commonly known as “dim sum  bonds”).