China Development Bank Financial Leasing has filed its application for a proposed initial public offering on the Hong Kong bourse.
The total funds expected to be raised and timeline were redacted in an application proof posted to the Hong Kong Stock Exchange news website.
As to the purpose of the IPO, the lessor says that it intends to use the funds raised to “strengthen our capital base to meet the needs to our continued growth.”
Earlier reports have claimed that it aims to raise around $1 billion from the listing, which is likely to be completed during the first half of this year.
Summary financial statements contained in the document show that for the nine months to 30 September, the lessor’s revenue in at CNY8.1 billion ($1.24 billion), down 4.6% on the previous corresponding period, while profit before tax amounted to CNY1.01 billion, down 31%. Net profit was down by a similar magnitude at CNY841 million.
The application proof shows that aircraft leasing accounted for 43.4% of its revenues over the nine months ended 30 September 2015. As of the end of that period, it had an owned fleet of 179 aircraft with an average age of four years, a further 11 managed aircraft and 181 other committed aircraft.
The majority of aircraft it owns are Airbus A320s and Boeing 737NGs, and its committed portfolio includes 68 A320s and 60 737s.
Its other major business area was in infrastructure leasing, which accounted for 32.8% of revenue. The remainder came from ship, commercial vehicle and construction machinery leasing.
The document also shows that it has relied largely on bank borrowings to fund its asset purchases, with an aggregate CNY102 billion amount outstanding at the end of 2015. It also had a further CNY5.92 billion in outstanding bonds with a maturity of more than one year.
In February, CDB Leasing was also approved by the China Banking Regulatory Commission to issue up to CNY10 billion in bonds, which it intends to issue in tranches during 2016.
Deutsche Bank, Bank of America Merrill Lynch and CITIC CLSA Capital Markets have been appointed as the joint sponsors of the IPO.
Source: Cirium Dashboard
