ALAFCO in $161m Ex-Im bond debut

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Kuwaiti aircraft leasing company ALAFCO made its US Export-Import Bank (Ex-Im) bond debut last month with a $161 million transaction, according to sources.

The leasing company issued the 12-year bond through a vehicle, Osprey Aircraft Leasing. The bond priced at a 2.209% coupon equivalent to mid-swap spreads plus 58 basis points.

Deutsche Bank was the bookrunner and underwriter in the transaction, sources indicate.

The bond refinances a new Boeing 777-300ER delivery that was acquired under a purchase and leaseback agreement with Garuda Indonesia.

The aircraft (MSN 40074), which delivered in June, is part of a two-aircraft deal. The second 777-300ER is expected later this month.

Earlier this year, ALAFCO hired Deutsche Bank to study the potential sale of global depositary receipts in London.

The lessor has 125 aircraft on order with Boeing and Airbus, including 85 Airbus A320neos, 12 A350s, 20 Boeing 737 Max and eight 787-8 units.

ALAFCO and Deutsche Bank could not be reached for comment.