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ADIA, Avolon and I Squared plan Constellation aircraft-leasing platform
Avolon said Monday it agreed with I Squared Capital and an ADIA subsidiary to form Constellation Aviation, which is expected to buy a $1.4 billion seed fleet of 22 jets, The National and a company statement reported.
- The National and Business Wire are now reporting this
- New headline Was: “Avolon creates new aircraft leasing platform with ADIA, I Squared Capital”
- Our desk filed its story
Avolon, I Squared Capital and a subsidiary of the Abu Dhabi Investment Authority agreed Monday to form Constellation Aviation, an aircraft-leasing investment platform expected to buy a seed fleet from Avolon valued at $1.4 billion1,2.
The seed portfolio is 22 aircraft with an average age of about five years, on lease to 17 airlines in 15 countries, the companies said1,2.
Avolon will keep a minority equity interest and serve as Constellation's exclusive aircraft manager and servicer1,2.
Khadem AlRemeithi, executive director of ADIA's infrastructure department, said aircraft leasing is "a resilient and growing sector supported by strong structural demand for modern aircraft"1.
The National reported that ADIA invests for the Abu Dhabi government and cited consultancy Global SWF putting the fund's assets near $1.1 trillion1.
Avolon's statement said the deal is expected to close subject to regulatory approvals and that a syndicated debt facility from international banks will support the joint venture2.
BNPP, CACIB, SocGen, ING, MUFG and Mizuho are listed as joint lead bookrunners, with Mizuho as financial adviser to the investors, according to the release2.
I Squared co-founder Gautam Bhandari said manufacturer order books "stretch a decade or more into the future" and that airlines rely on lessors for fleet growth2.
Avolon said it works with 138 airlines in 62 countries and had an owned, managed and committed fleet of 1,092 aircraft as of Sept. 30, 20262.
I Squared Capital said it manages more than $60 billion and is headquartered in Miami2.
What remains unknown includes the size of Avolon's minority stake, the banks' facility amount, and when regulators will rule1,2.
Sources
How it’s being reported
3 sourcesFirst reported by Business Wire
Abu Dhabi's Adia, Avolon and I Squared Capital to launch aviation investment platform
ADIA's role as Gulf sovereign investor and aviation supply shortages driving lease demand.
Abu Dhabi paper reports ADIA, Avolon and I Squared launching Constellation Aviation around a $1.4 billion, 22-aircraft seed portfolio.
Leaves out Bank syndicate, legal advisers and Avolon fleet size figures in the company statement.
Avolon, I Squared Capital and Abu Dhabi Investment Authority Launch Constellation Aviation, a New Aircraft Leasing and Infrastructure Investment Platform
Joint-venture structure, closing subject to regulatory approvals, and Avolon's servicing role.
Avolon company release details the Constellation joint venture, seed fleet, close conditions, bank group and executive comments.
Leaves out ADIA assets figure attributed by The National to Global SWF.
Avolon creates new aircraft leasing platform with ADIA, I Squared Capital
Gives this outlet’s account of the story.
Where they agree
- Three parties are launching Constellation Aviation as an aircraft-leasing platform.
- A $1.4 billion seed portfolio of 22 aircraft leased to 17 airlines in 15 countries is expected to transfer from Avolon.
- Avolon retains a minority equity interest and exclusive management and servicing.