In a robust return to international debt markets, CDBL Funding 1, a wholly owned subsidiary of CDB Aviation Lease Finance DAC, has priced senior unsecured notes amounting to US$700 million, marking its first bond issuance in four years.

The dual-tranche issuance drew robust demand from global investors, peaking at over US$4 billion across nearly 100 institutional accounts. The offering included US$400 million of five-year fixed-rate notes at a 4.750% coupon ( five-year US treasuries + 75bps ) and US$300 million of five-year floating-rate notes at Secured overnight financing rate ( Sofr ) + 80bps, with both tranches tightening significantly from the initial price guidance.

CDB Aviation, backed by China Development Bank Financial Leasing, guarantees the issuance, with the broader China Development Bank group providing a keepwell and asset purchase deed.

The company says the strong investor appetite and favourable pricing reflect market confidence in its credit profile and strategy.

“This marks CDB Aviation’s return to the international bond market after a four-year hiatus,” says 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, optimizing our debt structure, and having a better matching of assets with our liabilities, we are positioning CDB Aviation for sustainable, long-term growth.”

A consortium of global banks, including Standard Chartered, Morgan Stanley, Goldman Sachs, and Bank of China, acted as joint global coordinators, highlighting the strategic importance of the deal across both Asian and global financial hubs.

The deal was jointly led by a consortium of global banks, Standard Chartered, Morgan Stanley, Goldman Sachs ( Asia ), China Citic Bank International, China Securities International, and Bank of China, acting as joint global coordinators, joint lead managers, and joint bookrunners.

Additional joint lead managers and bookrunners included HSBC, China Everbright Bank Hong Kong Branch, Crédit Agricole CIB, Industrial Bank Hong Kong Branch, DBS Bank, and China Minsheng Banking Corp Hong Kong.

Backed by US$8.28 billion in financing and a growing sustainability-linked funding footprint, CDB Aviation has cemented its role as a major global aircraft lessor with 70 aircraft transactions completed in 2024, and a record order of 130 new narrowbody jets.

It now leases over 300 aircraft to 85 airlines across 40 countries and regions, managing a total portfolio of 521 aircraft.