Global aviation finance company Avolon announced it has raised US$750 million in a new unsecured credit facility with a syndicate of seven banks predominantly in the Middle East and India. The transaction further diversifies Avolon’s sources of capital, accessing new liquidity pools with significant appetite for high quality lending opportunities in the aviation sector. The facility has a three-year tenor with options for extension to up to five years. JP Morgan and Emirates NBD acted as joint bookrunners on this transaction. This transaction means Avolon has raised over US$3.4 billion in 2024 from a diverse range of funding sources in the public and private markets.
Ross O’Connor, Avolon CFO, commented: “This $750 million 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 and we appreciate the support of JP Morgan, Emirates NBD and the wider bank syndicate.”
Puja Turner, Head of CEEMEA Loans & Structured Credit at JP Morgan, commented: “We’re pleased to partner with Avolon on this transaction, using the strength of our franchise to support their growth. As banks in the Middle East and India deepen their understanding of the lessor business model and look to deploy capital beyond domestic markets, we anticipate they will be a growing source of funding for aviation businesses with a strong track record.”
Aamir Mansoor, Head of GRE and Aviation Desk at Emirates NBD commented: “We are delighted to support Avolon’s growth and to forge a strong relationship with yet another leading player in the global aviation industry. As aviation continues to be a vital driver of economic expansion, we foresee significant opportunities for the sector in the coming years. As pioneers in setting up a dedicated Aviation Desk within the UAE, we bring unparalleled regional expertise and a vision to transform aviation finance. We remain committed to leading and shaping the future of aviation finance, reinforcing our position as a regional powerhouse in this sector.”
Avolon’s available liquidity at 31 March 2024 was US$6.6 billion, with a net debt to equity ratio of 2.2 times. The proceeds of the facility will be used for general corporate purposes.
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