Industry Analysis
CDB Aviation Prices $500M Senior Notes with Strong Investor Demand
CDB Aviation issued $500 million senior unsecured notes at 4.25%, oversubscribed 4.7 times, supporting capital structure and growth plans.
This article is based on an official press release from CDB Aviation.
CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd., has successfully priced a US$500 million issuance of senior unsecured notes. According to the company’s official announcement released on February 5, 2026, the notes carry a fixed coupon rate of 4.25% and are set to mature in February 2031.
The issuance, conducted through its subsidiary CDBL FUNDING 1, attracted significant attention from the global investment community. The order book peaked at over US$2.36 billion, representing an oversubscription rate of approximately 4.7 times. This robust demand allowed the lessor to tighten pricing significantly, landing at a spread of 50 basis points over the 5-year US Treasury rate (T5 + 50bps), a 45 basis point improvement from the Initial Price Guidance.
This transaction highlights the continued appetite among international investments for high-grade aviation assets. The notes were issued under Regulation S, targeting investors outside the United States, and hold strong investment-grade ratings of A2 from Moody’s, A from S&P Global, and A+ from Fitch.
The proceeds from this issuance are earmarked for general corporate purposes, including the optimization of the lessor’s capital structure and the enhancement of its competitive position in the global market. As of early 2026, CDB Aviation manages a fleet of over 520 owned and committed aircraft, serving approximately 85 Airlines customers across more than 40 jurisdictions.
In a statement regarding the successful pricing, the company’s leadership emphasized the strategic importance of this return to the international bond market.
“This marks another resounding success following CDB Aviation’s return to the international bond market in 2025. The issuance reflects our ongoing efforts to optimize our capital structure and enhance our competitiveness, underscoring the CDB Aviation team’s unwavering commitment to our long‑term vision.”
— Jie Chen, Chief Executive Officer, CDB Aviation
The transaction was supported by a syndicate of Joint Bookrunners, including Standard Chartered Bank, China CITIC Bank International, HSBC, Goldman Sachs (Asia) L.L.C., Bank of Communications, and China Securities International. The pricing of CDB Aviation’s latest notes offers a revealing glimpse into the current state of aviation finance in early 2026. When analyzed against verified market data, the 4.25% coupon for a 5-year term appears highly competitive, particularly when compared to industry peers.
For instance, data from January 2026 shows that industry leader AerCap priced a 3-year note at 4.125%. CDB Aviation achieved a nearly identical rate (4.25%) for a longer 5-year tenor. Typically, longer maturities command higher premiums; the fact that CDB Aviation secured such tight pricing suggests investors view its credit, backed by the “quasi-sovereign” status of the China Development Bank, as exceptionally stable.
This issuance occurs against a backdrop of a “favorable” outlook for aviation lessors, as characterized by agencies such as Morningstar DBRS. A persistent shortage of new aircraft, driven by production delays at major OEMs, has sustained high lease rates and aircraft values. This environment benefits lessors with established fleets who are now refinancing debt to fund future growth.
With approximately $19.3 billion in lessor debt maturing in 2026, capital markets activity is expected to remain high. The 4.7x oversubscription for CDB’s bond mirrors a wider trend where global investors are seeking stable yield generators amidst stabilizing global interest rates.
Sources:
CDB Aviation Secures $500 Million in Oversubscribed Note Issuance
Strategic Capital Structure and Executive Commentary
Market Context and Comparative Performance
AirPro News Analysis
Broader Industry Trends
Photo Credit: CDB Aviation