BOC Aviation to increase working capital with sale of shares

In a move aimed at increasing working capital and to aid the purchase of additional aircraft, BOC Aviation, the aircraft leasing arm of the Bank of China, is to sell off up to 40% of the firm through a listing of new and old shares on the main board of the Hong Kong Stock Exchange. 90% of these shares will be available to international investors, while 10% will be available exclusively to Hong Kong investors.
Allowing BOC Aviation the ability to retain overall control of the company, the proposed sale received approval from the board of the Bank of China last Friday, though the actual sum they hope to raise has not been mentioned.
As one of the world’s leading aircraft lessors, as of June this year BOC Aviation owned 236 aircraft, while managing a further 20. According to BOC’s annual report, BOC Aviation has total assets of USD$11.4 billion and net assets of USD$2.1 billion, recording a post-tax profit of USD$309 million in 2014.
Still headquartered in Singapore, the Company’s origins date back to 1993 when it first started operating as Singapore Aircraft Leasing Enterprise (SALE). It bought its first Airbus with an order for 6 A320s in 1996 and it first Boeing with 6 B777s in 1997.
In 2006 BOC acquired 100% of SALE for US$3.25 billion, creating BOC Aviation, shortly after which it made its first purchase from Embraer for 15 E190s. Over time the company has purchased or ordered over US$30 billion worth of aircraft and has been profitable every year since its inception.
The Company offers a wide range of services, ranging from operating leases to equity and debt financing.