Update: BOC Aviation prices US$750m bonds; may be headed for HK listing

BOC Aviation has priced its US$750 million senior unsecured bonds at a fixed interest coupon of 3.875 per cent per annum.

The fixed coupon with interest is payable semi-annually in arrears.

BOC Aviation's 10-year senior unsecured notes due 2026 are issued under its US$5 billion global medium term note programme.

The joint bookrunners for the issue were BOC International, Citigroup, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, BNP Paribas and Wells Fargo Securities.

There was strong interest from institutional funds, pension funds and insurers with orders in excess of US$3.2 billion, said BOC Aviation, the aircraft leasing arm of Bank of China.

It will use the net proceeds to fund capital expenditure, refinance existing borrowings or for general corporate purposes.

BOC Aviation was said to be seeking approval on Thursday from the Hong Kong stock exchange for an up to US$1.5 billion initial public offering (IPO).

An IFR report on Tuesday, which cited people close to the deal, said BOC Aviation could start testing investors' demand for the IPO as soon as next week if it receives the go-ahead from the listing committee of the Hong Kong exchange.