A SOVEREIGN wealth fund in Singapore is set to invest $300 million in equity in Irish aircraft leasing group Avolon.
Singapore’s Government Investment Corporation (GIC) will inject the funding into the Dublin-based company to become a major shareholder in Avolon alongside Cinven, CVC Capital Partners and Oak Hill Capital Partners, the private equity groups.
GIC was formed in 1981 and manages investments on behalf of the Singapore state. Its website says it has invested more than $100 billion in a range of assets – from equities to real estate to natural resources – in more than 40 countries.
Securing it as an investor will be seen as a coup for Avolon. This will bring to about $4 billion the amount of equity and debt raised by Avolon since it was founded by Dómhnal Slattery in May 2010.
Last month, The Irish Times reported that Avolon had raised $600 million in debt in the previous 90 days. This brought its total loan facilities to $2.6 billion from 15 institutions.
No comment was available from Avolon last night but an announcement on the latest funding initiative is expected from the company today.
Avolon has a committed fleet of 88 aircraft, with 25 customers in 18 countries. The total value of the fleet is more than $4 billion.
Its latest deal involved the sale and leaseback of nine aircraft with Ryanair and AirAsia last month.
Avolon was formed last year by Mr Slattery and a group of former executives at Royal Bank of Scotland’s (RBS) aircraft leasing unit, including chief commercial officer John Higgins.
Avolon was recently excluded from the sale process for Dublin-based RBS Aviation Capital, which is being sold by the taxpayer-backed UK financial institution as it seeks to reduce the size of its balance sheet.