ADIA, I Squared Capital partner with Avolon on aircraft-leasing platform
By Staff Writer
Abu Dhabi Investment Authority (ADIA) and infrastructure investor I Squared Capital have partnered with global aircraft leasing giant Avolon to establish an aircraft-leasing investment platform.
Constellation Aviation will initially acquire 22 aircraft worth about $1.4 billion from Avolon, leased to 17 airlines across 15 countries.
The companies did not disclose the financial details of the joint venture.
The venture will combine institutional investment capital from I Squared Capital and ADIA with Avolon’s aircraft origination, leasing and asset-management capabilities. Avolon, a subsidiary of China’s Bohai Leasing Co Ltd, will retain a minority stake and will continue to manage the aircraft.
The transaction will be supported by a syndicated debt facility arranged by a group of international banks. BNP Paribas, Crédit Agricole CIB, Société Générale, ING, MUFG and Mizuho are acting as joint lead bookrunners, with Mizuho also serving as financial adviser to the investors.
This is not the first time Abu Dhabi capital has ventured into the global aircraft-leasing market.
Mubadala Investment Company’s wholly owned Sanad operates an asset-management business providing aircraft-engine leasing, trading and other asset solutions alongside its MRO operations.
In 2019, Abu Dhabi Catalyst Partners, backed by Mubadala, committed $100 million to a joint venture with Sirius Aviation Capital to establish an aircraft-leasing company in Abu Dhabi.
(Writing by Brinda Darasha; editing by Seban Scaria)