Government of Singapore Investment Corporation invests US$300m in Avolon
Avolon announces equity investment from leading sovereign wealth fund
Total equity capital raised reaches US$1.4 billion
Dublin, New York & Singapore, 27 October, 2011: 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.