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Avolon raises additional USD1.6bn debt financing in 2013

Avolon, the international aircraft leasing group, has now raised total capital of USD6.7bn and increased its fleet to a total of 182 aircraft.

According to the company’s full year trading update for 2013 additional debt financing of USD1.6bn was raised during the year.
 
Avolon closed and funded Emerald Aviation Finance USD636m Asset Backed Securitisation, with all 20 aircraft novations completed within 60 days of closing.
 
In addition Avolon launched Avolon Capital Partners, a USD500m joint-venture with leading US bank, Wells Fargo, which is active in the market.
 
During the year, Avolon delivered 34 aircraft valued at USD2bn bringing total delivered fleet, net of 20 aircraft sales, to 109 aircraft and total committed fleet to 182 aircraft. The company delivered the first of five committed Boeing 787 aircraft while maintaining the youngest and most liquid large scale lessor fleet in the world and maintaining a 100 per cent fleet utilisation.
 
Avolon has increased its global lending group to 29 financial institutions and customer base to 41 airlines.
 
Dómhnal Slattery, Avolon CEO, says: “2013 represented the most active year in Avolon’s history. We delivered a strong performance and exceeded all of our full year operating and financial targets. Avolon grew its committed fleet to 182 aircraft – net of the sale of 20 aircraft – and increased our customer base to 41 airlines. We ranked in the top five aircraft lessors globally in terms of transaction origination in 2013 – and we continue to maintain the youngest large lessor fleet in the world.
 
“We have also increased our committed capital base to almost USD7bn supported by four strong shareholders and a lending group of 29 financial institutions. We are particularly pleased with the success of our Emerald Aviation Finance USD636m asset-backed securitisation which closed in October 2013.
 
“We remain confident about the prospects for our business and the industry as a whole. IATA’s recent outlook points to continued growth and improving profitability for the airline industry in 2014 and beyond and aircraft manufacturer orderbooks are largely sold out until the end of decade. We have seen both of these factors feed into strong demand for our forward orders on 737’s and A320’s both for the current technology and re-engined versions.
 
“Avolon has a strong balance sheet and significant liquidity to capitalise on the current growth of the sector and to deliver continued growth and superior returns for our shareholders in 2014 and beyond.”

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