Aircraft leasing group Avolon has sealed a $300 million equity commitment from the Government of Singapore Investment Corp. Avolon has raised a total of $1.4 billion in equity capital over the past year and a half, from investors including private equity firms Cinven, CVC Capital Partners and Oak Hill Capital Partners.
Avolon, the international aircraft leasing group, today announces that it has successfully secured a third round of equity capital with a US$300 million equity commitment from the Government of Singapore Investment Corporation (‘GIC’), subject to customary regulatory approval.
US$300 million equity commitment from GIC, one of the world’s leading sovereign wealth funds
Total of US$1.4 billion in equity capital raised over the past 18 months from GIC and leading private equity firms Cinven, CVC Capital Partners and Oak Hill Capital Partners
Total capital raised to date in excess of US$4 billion
Equity capital strengthens Avolon’s strategic ties in the Asia-Pacific region and brings geographic diversity to its ownership structure
Proceeds will be used to accelerate Avolon’s expansion and the continued growth of its aircraft fleet
Avolon’s committed fleet now stands at 88 aircraft with a target fleet size of 150 aircraft by 2014
Avolon currently has youngest lessor fleet in the world with an average aircraft age of 1.4 years
Avolon Chief Executive Officer, Dómhnal Slattery, commented:
“We are delighted to welcome the Government of Singapore Investment Corporation as both a strategic and capital partner in our business. GIC is one of the leading and most respected sovereign wealth funds in the world and their decision to make this significant investment in Avolon is a clear endorsement of the scale and quality of our franchise and the strong growth potential of the aircraft leasing sector.”
Avolon announces a US$300 million equity capital commitment from GIC, a leading sovereign wealth fund, subject to customary regulatory approval. Avolon has now secured a total of US$1.4 billion in equity capital from GIC and leading private equity firms, Cinven, CVC Capital Partners and Oak Hill Capital Partners.
The equity commitment from GIC adds geographic diversity to Avolon’s capital base and enhances its ownership structure. GIC joins leading private equity firms Cinven, CVC Capital Partners and Oak Hill Capital Partners as equity investors in Avolon with each bringing significant experience and complementary strengths to the Avolon business.
Avolon’s committed fleet now stands at 88 aircraft with 26 customers in 18 countries. Avolon’s fleet is the youngest lessor fleet in the world with an average aircraft age of 1.4 years. The proceeds of this capital raising will be used to accelerate Avolon’s expansion; and, to fund the continued growth of its aircraft fleet. Avolon’s objective is to reach a fleet size of 150 aircraft, valued at c. US$6 billion, by 2014.
Asia-Pacific | Market Opportunity
The Asia-Pacific region, where 34% of the Avolon fleet is currently placed, is strategically important to Avolon. It is estimated that approximately half of the world’s air traffic growth over the next two decades will be driven by travel to, from and within the Asia-Pacific region. To support this growth, it is estimated that airlines in the region will need over 11,000 new aircraft, worth US$1.5 trillion, over the next 20 years. Avolon is deploying significant resource towards the expansion of its business in the region; and, to becoming the leading provider of innovative financing solutions to help local airlines fund growing aircraft fleets. Strengthening and geographically diversifying Avolon’s capital base – through a world-class equity capital partner in Asia-Pacific – advances Avolon’s objective to be the aircraft lessor of choice for airlines in the Asia-Pacific region.
Citigroup Global Markets Inc. acted as exclusive placement agent to Avolon in connection with the capital raise.
Headquartered in Ireland, with offices in Stamford CT, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon’s investors include three of the world’s leading private equity firms Cinven, CVC Capital Partners and Oak Hill Capital Partners and one of the world’s leading sovereign wealth funds, Government of Singapore Investment Corporation (GIC).
Avolon has established itself as one of the leading global players in the aircraft leasing sector, leveraging off the strong financial backing of its owners and the extensive trading history and senior industry relationships of its management team. The primary asset focus of the business is on young fuel-efficient single-aisle aircraft such as the Airbus A320 family and Boeings 737NG family. In addition, Avolon also invests in best-in-class twin-aisle aircraft such as the Airbus A330 family and Boeing 777 family. Avolon has a committed fleet of 88 aircraft serving 25 customers in 18 countries. Avolon’s fleet is also the youngest fleet in the world with an average aircraft age of 1.4 years. See www.avolon.aero
GIC is a global investment management company established in 1981 to manage Singapore’s foreign reserves. With a network of nine offices around the world, GIC invests internationally in equities, fixed income, natural resources, treasury & currencies, real estate, private equity and infrastructure. GIC is about 1,200 in staff strength and manages well over US$100 billion. GIC SI is the private equity arm of GIC, investing globally in private equity funds, infrastructure, and directly in companies on both minority equity and a structurally preferred basis.Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.