Avolon ‘preparing for initial public offering this year’

Irish Aircraft lessor Avolon is preparing for an initial public offering this year, according to sources.

Avolon, which is backed by private equity firms Cinven Ltd, CVC Capital Partners Ltd and Oak Hill Capital Partners, as well as Singapore’s sovereign wealth fund, has been interviewing investment banks to hire under- writers for an IPO, the sources said.

CVC and Cinven declined to comment.

Representatives of Avolon and its other investors did not immediately respond to requests for comment.

Avolon’s listing plans come as aviation draws interest from longer-term investors such as insurers and pension funds, who hope to boost weak returns dictated by low interest rates.

Avolon, which is based in Dublin, has raised $7.2bn (€5.23bn) in capital since its launch in May 2010.

It provides aircraft leasing and lease management services to airlines and aircraft investors.

It has a fleet of over 190 aircraft serving 46 customers in 27 countries.

Its customers include American Airlines, Air France KLM and Ryanair.

In 2013, it delivered 34 aircraft to its clients valued at over $2bn. Avalon’s shareholders have made equity commitments of to the company totalling $1.4bn since the firm’s launch, its website says.

It has also raised $5.8bn in debt from commercial and specialist aviation banks.

— Reuters