Aviation lessor Avolon announced it has raised US$1.0 billion in a new unsecured dual tranche bank facility with a syndicate of six banks in the Middle East. The facility will contain a conventional and an Islamic tranche, with a four-year tenor. The transaction builds on the US$750 million credit facility Avolon raised in June 2024, which had significant Middle East bank participation, and establishes relationships with five new banks in the region.
Emirates NBD Capital Limited acted as coordinator, initial mandated lead arranger, and bookrunner on the transaction alongside Abu Dhabi Commercial Bank PJSC and Warba Bank K.S.C.P. as initial mandated lead arrangers and bookrunners. Combined with the US$1.1 billion senior unsecured facility announced on 29 April 2025, Avolon has raised US$2.1 billion in new unsecured facilities in Q2 2025.
The facility announced on 29 April is split equally between a drawn loan and a revolving credit facility and has a tenor of five years. Seventeen banks participated in the facility, including seven new lenders to Avolon. The mandated lead arrangers on the facility were: DBS Bank, CaixaBank, Commonwealth Bank Group, Truist Financial, Cathay United, Allied Irish Banks, and Sumitomo Mitsui Trust Bank.
Ross O’Connor, Avolon CFO said: “Avolon continues to source capital from a diverse range of public and private channels, and this facility strengthens our balance sheet and enhances our availability liquidity. We were pleased to attract a broad range of participants, including several new banking relationships in Asia, reflecting the depth of demand for our credit among global banks. O’Connor said of the Middle East funding that “this facility further expands our banking relationships in the Middle East consistent with our strategy of diversifying our sources of capital. It demonstrates the strong appetite in the region for high quality aviation lending opportunities, with Avolon’s positive financial trajectory and successful growth strategy ensuring the transaction was well supported.”
Financial results
Avolon also announced it earned net income of US$145 million for Q1, up 36% year on year with lease revenue of US$683 million, up 10% year on year and the highest quarterly performance in Avolon’s history. The company said it had strong operating cashflow of US$365 million generated in Q1, up 8% year on year and issued US$850 million of senior unsecured notes due 2030.
Avolon said it acquired 115 aircraft, including closing the acquisition of Castlelake Aviation Limited, increasing the delivered fleet to 639 owned and managed aircraft. It also said it sold 34 aircraft and ended the quarter with 66 aircraft agreed for sale and ended the quarter with an owned, managed and committed fleet of 1,096 aircraft, including orders and commitments for 457 new-technology aircraft. The lessor also said it placed 15 aircraft from its orderbook ending the quarter with 97% of its orderbook placed for the next 24 months.
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