GIC takes 20% of PE-owned aircrafter leaser Avolon

According to Avolon, GIC's commitment marks its third financing tranche, taking total equity capital raised to $1.4 billion in the past 18 months. Avolon was launched in 2010 as an aircraft leasing firm - predominantly of young, fuel-efficient, single-aisle aircrafts - for clients worldwide. The company's current fleet is comprised of 88 aircrafts with 26 customers in 18 countries.

Avolon claims to be the "youngest lessor fleet in the world."

GIC's capital will be used to expand Avolon's fleet to compete with the long-established players in the industry, as well as bolster its Asia Pacific network. The company looks to own 150 aircrafts, valued at approximately $6 billion, by 2014.

"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," Domhnal Slattery, CEO of Avolon, said in a statement.

Avolon operates out of Dublin, Hong Kong, Shanghai and Connecticut. Currently 34% of its fleet is leased in Asia, which is slated to increase given that approximately half of the world's air traffic growth over the next 20 years will be driven by Asia travel. The company noted that airlines will need more than 11,000 of new aircrafts, worth $1.5 trillion, to accommodate growth in the region.

Citigroup Global Markets was the placement agent to Avolon in the transaction.

According to The Wall Street Journal, GIC's Singaporean counterpart, Temasek Holdings, held a minority stake in Singapore Aircraft Leasing Enterprise earlier last decade. The company was bought by Bank of China in 2006 and has since been renamed BOC Aviation.

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• Topics
• Southeast Asia
• Infrastructure
• GIC Private
• Transportation
• Infrastructure
• CVC Capital Partners
• Singapore