BOC Aviation finalises $500mn term loan

Hong Kong Stock Exchange-listed BOC Aviation has signed a $500 million unsecured term loan facility with a tenure of five years.

"The facility will be used to repay a maturing term loan facility. The borrower under the facility is BOC Aviation (Ireland) Limited and the facility is guaranteed by BOC Aviation," says an official release.

Steven Townend, Deputy Managing Director and Chief Financial Officer, BOC Aviation says: "We are very pleased to conclude another unsecured term loan financing at a similar pricing level to our existing deal. This commitment from a diverse group of lenders signals their confidence in our Company's strong credit profile and will support our future growth."

BOC Aviation is a global aircraft operating leasing company with a fleet of 612 aircraft including five owned and one managed freighter. Its owned and managed fleet was leased to 81 airlines in 38 countries and regions worldwide as on September 30, 2022.

Revenue increased 8 percent to $1.2 billion for H12022, and net loss was $313 million compared to a profit of $254 million in H12021. The primary reason for the loss was the write-down of the net book value of 17 aircraft that remain in Russia of $804 million. "This was partially offset by cash collateral held in respect of those aircraft of $223 million and tax credits of $63 million. Excluding this impact, core net profit after tax (NPAT) was $206 million."

"In the first half, BOC Aviation generated core NPAT of $206 million, which demonstrates the resilience of our underlying business," says Robert Martin, Managing Director and Chief Executive Officer, BOC Aviation. "Our balance sheet strength and high levels of liquidity position us well to continue producing long-term sustainable earnings for our shareholders."

BOC Aviation generated positive operating cash flow, net of interest expense, of $717 million during H12022, and ended the half year with $6 billion in available liquidity.