SMBC Aviation Capital has raised a $500 million five-year unsecured bond.

The notes, which come due in July 2023, carry an interest rate of 4.125% and priced at US treasuries plus 133 basis points, says the lessor.

Over the past two years, it has raised $1.5 billion in unsecured capital, including the most recent bond. The previous two deals had coupons under 3%.

"The successful execution of this transaction demonstrates the market's confidence in our business and our commitment to diversifying our sources of funding," states chief financial officer Barry Flannery. "Our bond programme is the foundation of our third-party funding strategy and, together with our ongoing shareholder support, means we have the flexibility to access multiple and diverse funding channels in all market conditions, a key strategic focus for the business."

In April, SMBC won shareholder approval for a $1 billion capital infusion and closed a $200 million syndicated term loan, plus a $400 revolving credit facility.

Source: Cirium Dashboard