SMBC Aviation Capital Hong Kong 2 Limited, a consolidated subsidiary of Sumitomo Mitsui Finance and Leasing Company, Limited, signed a loan agreement on 21 October 2026 with a syndicate of lenders. Its parent disclosed the terms in an extraordinary report filed on 22 October, because the agreement carries a financial covenant.
The loan
The syndicate has DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited as joint global coordinators. The principal totals ¥266bn across two term facilities, converted at the exchange rate on the last day of September 2026. The report gives the amount only in yen, so the original loan currency is not stated.
Term Facility A matures on 25 October 2030 and Term Facility B on 27 October 2032. The debt is unsecured.
The covenant
The financial covenant requires that EBITDA, taken from the consolidated financial statements of SMBC Aviation Capital Limited and its subsidiaries, does not fall below 1.5 times interest expense.
The report is filed under Article 19, Paragraph 2, Item 20 of the Cabinet Office Ordinance on Disclosure of Corporate Affairs. It does not give the loan's pricing or the intended use of the proceeds.
The bond programme link
On the same day, Sumitomo Mitsui Finance and Leasing filed an amendment to its shelf registration for corporate bonds, originally filed on 12 August 2026. The programme covers up to ¥400bn, took effect on 20 August 2026 and is valid until 19 August 2028. The amendment makes the extraordinary report a reference document for the registration, and it lists the full ¥400bn as still available. The effectiveness of the registration is suspended only for 22 October 2026, the filing date.