Dublin | 5 November, 2018: Avolon, the international aircraft leasing company, announces that ORIX Corporation (“ORIX”), through its wholly owned subsidiary ORIX Aviation Systems, has completed the acquisition of a 30% stake in Avolon from Bohai Capital for US$2.2 billion, based on a 31 March 2018 NAV.
The addition of ORIX, an investment grade institution, diversifies and strengthens the financial profile of Avolon's shareholder base and facilitates positive credit rating momentum. Additionally, the new governance structure enhances protections for minority shareholder and debt investors.
Avolon is an aircraft leasing company headquartered in Ireland. It specializes in the primary market of purchasing new aircraft from aircraft manufacturers and leasing them to airline companies. In 2016, Avolon became a fully owned subsidiary of Chinese conglomerate the HNA Group’s leasing company, Bohai Capital Holding Co., Ltd. (“Bohai Capital”). Avolon has since expanded its business and, at present, is the third largest aircraft leasing company in the world.
ORIX Aviation was established in Ireland in 1991 and has been owned since incorporation by Tokyo-based ORIX Corporation (“ORIX”). Since formation ORIX Aviation has grown to be a major aircraft lessor, asset manager and trading company. In addition to the leasing of its own portfolio aircraft, ORIX Aviation also focuses on developing a unique asset management platform that attracts both Japanese and international investors.
Following the share acquisition, there will be no material change as to how Avolon operates, and ORIX Aviation will utilize the significant knowledge and experience it has developed over many years in the aircraft leasing business to be a supportive shareholder of Avolon.
The aircraft market is expected to see strong and continued passenger demand in the future. Going forward, the ORIX Group intends to further increase the scale of its aircraft leasing business through both ORIX Aviation and Avolon, to increase its presence in the global aircraft leasing market, and thereby grow its business from a medium and long-term perspective.