Advises on raising USD 2.1 billion for aviation finance funds
Published on May 9, 2025
Avolon clinches a whopping $2.1 billion, spreading it across two major financial ventures announced on April 29 and May 2.
International law firm Milbank steps up to the plate, offering legal counsel to Dublin-based global aviation financing powerhouse, Avolon. The firm's mission: to guide Avolon through two unsecured facilities worth a staggering $2.1 billion.
TheMilbank transportation and space team pulled out all the stops, with partner Nick Swinburne, associates Andrew McAdam, Harriet Rugg-Easey, Aarom Rafi, trainee Máire Sweeney, and Islamic finance specialist Munib Hussain all pitching in.
Let's dive into the specifics:
Facility One: $1 Billion Dollar Jackpot
Avolon hits the $1 billion mark with a new unsecured dual-tranche facility, boasting both conventional and Islamic compliant tranches. This four-year tenor facility, led by a Middle East-based six-bank syndicate, represents Avolon's first foray into Islamic financing.
Emirates NBD Capital Limited takes the reins as coordinator, initial mandated lead arranger, and bookrunner. Abu Dhabi Commercial Bank PJSC and Warba Bank K.S.C.P. also join forces, assuming the role of initial mandated lead arrangers and bookrunners.
Avolon CFO Ross O'Connor shared his thoughts: "This facility further expands our banking relationships in the Middle East, much in line with our strategy of diversifying our capital sources. It's a testament to the region's appetite for top-notch aviation lending opportunities, with Avolon's promising growth trajectory ensuring overwhelming support."
Facility Two: $1.1 Billion Cash Infusion
On April 29, 2025, Avolon raked in an additional $1.1 billion senior unsecured facility. This five-year tenor facility splits into an equal parts drawn loan and revolving credit facility. Seventeen banks participated, including seven new Avolon lenders, demonstrating widespread support from the financial sector.
DBS Bank, CaixaBank, Commonwealth Bank Group, Truist Financial, Cathay United, Allied Irish Banks, and Sumitomo Mitsui Trust Bank served as mandated lead arrangers for this facility.
O'Connor commented, "Avolon continues to tap various public and private sources for capital, with this facility shoring up our balance sheet and augmenting our availability liquidity. The broad range of global banks competing for our credit highlights the demand for Avolon's credit."
Milbank LLP plays an instrumental role in advising Avolon on this combined $2.1 billion raise in new unsecured facilities, cementing their reputation in structuring significant financial transactions like this one.[3]
In essence, Avolon's impressive $2.1 billion fundraising effort involves strategic engagement with global and regional banks to secure the financial muscle needed to propel their growth in the aviation leasing sector.
- Milbank LLP provided legal counsel to Avolon, guiding them through two unsecured facilities worth a total of $2.1 billion, as announced on April 29 and May 2, 2025.
- The first facility, a $1 billion unsecured dual-tranche facility, was led by a Middle East-based six-bank syndicate and included both conventional and Islamic compliant tranches.
- Avolon CFO Ross O'Connor stated that the first facility expanded their banking relationships in the Middle East, demonstrating the region's appetite for aviation lending opportunities, with Avolon's promising growth trajectory ensuring overwhelming support.
- On April 29, 2025, Avolon received an additional $1.1 billion senior unsecured facility, consisting of a drawn loan and revolving credit facility, with seventeen banks participating, including seven new Avolon lenders.
