Dublin-based aircraft leasing firm Avolon agrees new $750m debt deal

Avolon currently works with 145 airlines across 64 countries and manages a fleet of over 1,000 aircraft. 

Dublin-based aircraft leasing company Avolon has raised over $750m (€699m) in a new debt deal as it seeks to capitalise on demand in the aviation sector, the company has announced.

The new unsecured credit facility was negotiated with a syndicate of seven banks predominantly in the Middle East and India.

The company said this deal allows it to access “new liquidity pools with significant appetite for high-quality lending opportunities in the aviation sector”. The credit facility will last three years with the option to extend it to five.

JP Morgan and Emirates NBD acted as the lead co-ordinators on the deal.

Chief financial officer of Avolon, Ross O’Connor, said this facility “further diversifies our access to capital and forges new banking relationships in the Middle East and India”.

“Deepening our sources of liquidity ensures we can continue to capitalise on attractive market dynamics,” he said.

Avolon currently works with 145 airlines across 64 countries. It manages a fleet of over 1,000 aircraft as of the end of March. 

The company is controlled by the Chinese group Bohai Leasing.

This transaction means Avolon has raised over $3.4bn in 2024 from a diverse range of funding sources in the public and private markets.

The company said that its available liquidity as of the end of March was $6.6bn. The proceeds of the facility will be used for general corporate purposes.

According to the company’s trading update for the first three months of the year, it executed 39 lease transactions comprising new aircraft leases, follow-on leases and lease extensions.

It ended the quarter with an owned and managed fleet of 577 aircraft, with total orders and commitments for 456 fuel-efficient, new technology aircraft.