CDB Aviation's Subsidiary, CDBL, Secures $700 Million Through Dual-Tranche Senior Unsecured Notes Issuance in US Dollars
✨ A Fresh perspective on CDB Aviation's May 2025 bond offering ✨
Hey there, let's check out what went down with CDB Aviation's bond offering in May 2025!
CDBL FUNDING 1, a subsidiary of CDB Aviation, raised some serious dough on May 20, 2025, with a massive USD 700 million senior unsecured note offering. This offering was no joke, backed by the full support of CDB Aviation and China Development Bank Financial Leasing Co., Ltd. (HKEX: 1606).
The offering consists of:
- 5-year USD 400 million senior fixed rate notes bearing a 4.750% coupon, priced at T5+75bps, representing a 40bps tightening from IPG.
- 5-year USD 300 million senior floating rate notes, priced at SOFR + 80bps, tightening by 50bps from IPG.
This deal attracted a whopping demand from a global investor base, with a peak order book of over USD 4 billion and allocations made to approximately 100 accounts.
Jie Chen, Chief Executive Officer of CDB Aviation, shared some thoughts: "This issuance marks CDB Aviation's return to the international bond market after a four-year hiatus. This offering is a key milestone in executing our long-term funding strategy. By diversifying our funding sources, optimizing our debt structure, and having a better matching of assets with our liabilities, we are positioning CDB Aviation for sustainable, long-term growth."
The deal was jointly led by some top financial institutions, including Standard Chartered Bank, Morgan Stanley, Goldman Sachs (Asia) L.L.C., China CITIC Bank International, China Securities International, and Bank of China. Other notable participants include HSBC, China Everbright Bank Hong Kong Branch, Crédit Agricole CIB, Industrial Bank Co., Ltd. Hong Kong Branch, DBS Bank Ltd., and China Minsheng Banking Corp., Ltd. Hong Kong.
Now, keep in mind that this bond offering took place in 2025, so things may have changed since then. But at the time, this offering was a significant move for CDB Aviation in supporting their long-term growth plans.
Stay tuned for more updates on this fascinating journey of CDB Aviation! 🚀
- The news of CDB Aviation's May 2025 bond offering, worth USD 700 million, garnered attention from a global investor base due to its potential Impact on the business's infrastructure.
- The offering, led by financial institutions like Standard Chartered Bank and Morgan Stanley, was a notable step in CDB Aviation's strategy for long-term funding, diversifying their sources and optimizing debt structure to better align assets with liabilities.
- The real-estate implications of this offering were significant, as the funds raised could be used to acquire or develop new properties, enhancing the business's overall performance.
- The success of this offering, with a peak order book of over USD 4 billion, demonstrates the confidence that finance investors have in CDB Aviation's business model and long-term growth prospects.
