Aircraft group raises €485m

IRISH aircraft leasing group Avolon has announced its second capital raising — of $650m (€485m), comprising $250m of equity and $400m of debt finance.

The company has also agreed terms to acquire 11 new aircraft, under sale and leaseback structures, from four airlines based in Europe, Asia and Australia.

The debt finance has been provided by three leading European aviation finance banks.

The proceeds of the capital raising effort will go towards supporting the continued growth of Avolon’s fleet, which now stands at over 60 aircraft, valued in excess of $2.8bn.

“Since the business was launched in May 2010, Avolon has delivered on each of its business objectives.

“These include initial orders for new aircraft with both Boeing and Airbus together with the completion of sale and leaseback and portfolio transactions totalling over 40 aircraft on lease to a globally diverse pool of airlines.

“We have built a strong team to sustain our growth and deliver on our objectives for 2011 and beyond as we continue to create value for our shareholders,” said Avolon’s founder, Domhnal Slattery.