BOC Aviation Raises US$ 750 Mln in Unsecured Notes. Issue Oversubscribed More than 4x.

Award-winning Financial Journalist

Ashish Saxena

Equity Capital Markets

In what would be the biggest ever listing by an aircraft lessor, <a href="https://www.smartkarma.com/entities/656" target="_blank" data-smartkarma-citation="entities:656">Bank Of China Ltd</a>'s Singapore-based subsidiary BOC Aviation Ltd is seeking to raise US$ 2-3 bln in an IPO in Hong Kong.The company filed a <a href="http://www.hkexnews.hk/APP/SEHK/2016/2016030401/SEHKCaseDetails-2016030401.htm" target="_blank">draft prospectus</a> with the regulator on March 4.Just a week before that, <a href="https://www.smartkarma.com/entities/22635" target="_blank" data-smartkarma-citation="entities:22635">China Development Bank Financial Leasing Co Ltd</a> (CDBFL) - a comprehensive leasing company with an exposure to aircraft leasing among other assets - filed its <a href="http://www.hkexnews.hk/APP/SEHK/2016/2016022602/SEHKCaseDetails-2016022602.htm" target="_blank">draft prospectus</a> with the regulator.Right now, <a href="https://www.smartkarma.com/entities/9844" target="_blank" data-smartkarma-citation="entities:9844">China Aircraft Leasing Group Holdings Ltd</a> (CALC) is the only aircraft lessor listed on HKSE.While CALC is into operating and financial leasing of aircraft, CDBFL's business includes operating and financial leasing of aircraft, ship, commercial vehicle, construction machine, infrastructure, property, etc.That makes BOC Aviation a pure play on operating leasing of aircraft. In this insight, you'll read about:<ul><li>How BOC Aviation's fleet stacks up against that of CDBFL and CALC. You'll also read about their order books and top customers.</li><li>Why BOC Aviation is more profitable than CDBFL and CALC. Read the full analysis to find out which three factors make BOC Aviation more profitable than the two peers.</li><li>Why BOC Aviation's prudent dividend policy is a rare treat.</li><li>How UK SFO's investigation into export credits to <a href="https://www.smartkarma.com/entities/21380" target="_blank" data-smartkarma-citation="entities:21380">Airbus</a> is likely to impact BOCA and CDBFL. This is a risk that wasn't there until earlier this week.</li><li>Finally, what Airbus executives' warning on Brexit could mean for orders placed by BOCA and CDBFL. Again, a recent development in which Airbus executives openly opposed Brexit.</li></ul>Before we delve deeper into each of those points, let's take a quick look at the company's background.

In what would be the biggest ever listing by an aircraft lessor, Bank Of China Ltd's Singapore-based subsidiary BOC Aviation Ltd is seeking to raise US$ 2-3 bln in an IPO in Hong Kong.The company filed a draft prospectus with the regulator on March 4.Just a week before that, China Development Bank Financial Leasing Co Ltd (CDBFL) - a comprehensive leasing company with an exposure to aircraft leasing among other assets - filed its draft prospectus with the regulator.Right now, China Aircraft Leasing Group Holdings Ltd (CALC) is the only aircraft lessor listed on HKSE.While CALC is into operating and financial leasing of aircraft, CDBFL's business includes operating and financial leasing of aircraft, ship, commercial vehicle, construction machine, infrastructure, property, etc.That makes BOC Aviation a pure play on operating leasing of aircraft. In this insight, you'll read about:How BOC Aviation's fleet stacks up against that of CDBFL and CALC. You'll also read about their order books and top customers.Why BOC Aviation is more profitable than CDBFL and CALC. Read the full analysis to find out which three factors make BOC Aviation more profitable than the two peers.Why BOC Aviation's prudent dividend policy is a rare treat.How UK SFO's investigation into export credits to Airbus is likely to impact BOCA and CDBFL. This is a risk that wasn't there until earlier this week.Finally, what Airbus executives' warning on Brexit could mean for orders placed by BOCA and CDBFL. Again, a recent development in which Airbus executives openly opposed Brexit.Before we delve deeper into each of those points, let's take a quick look at the company's background.