CDBL FUNDING 1, a wholly owned subsidiary of CDB Aviation Lease Finance Designated Activity Company (CDB Aviation), has successfully priced a dual tranche offering of senior unsecured notes totalling US$700 million on May 20, 2025. The issuance marks CDB Aviation's return to the international bond market after a four-year absence.
The notes were issued under the company's US$3.0 billion Medium Term Note Programme in Regulation S format. The transaction is fully supported by its guarantor, CDB Aviation, along with the keepwell and asset purchase deed provider, China Development Bank Financial Leasing Co., Ltd., enhancing the credit profile of the offering.
The issuance is composed of two tranches: a US$400 million senior fixed rate note with a five-year maturity, offering a 4.750% coupon and priced at a spread of T5+75 basis points – reflecting a tightening of 40 basis points from initial price guidance; and a US$300 million senior floating rate note, also with a five-year term, priced at SOFR + 80 basis points after a 50 basis point tightening from initial guidance.
Investor response was overwhelmingly positive, with the orderbook peaking at over US$4 billion. Final allocations were made to approximately 100 institutional investors globally, highlighting the market's strong demand and confidence in the company's financial stability and strategic direction.
“This marks CDB Aviation's return to the international bond market after a four-year hiatus,” stated Jie Chen, Chief Executive Officer of CDB Aviation. “This issuance is a key milestone in executing our long-term funding strategy. By diversifying our funding sources, optimising our debt structure and having a better matching of assets with our liabilities, we are positioning CDB Aviation for sustainable, long-term growth.”
The transaction was led by a consortium of leading international financial institutions. Standard Chartered Bank, Morgan Stanley, Goldman Sachs (Asia) L.L.C., China CITIC Bank International, China Securities International, and Bank of China acted as Joint Global Coordinators, Joint Lead Managers, and Joint Bookrunners. They were supported by 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 as additional Joint Lead Managers and Bookrunners.
