Avolon Prices US$850 Million Senior Unsecured Notes Due 2031
Avolon completes US$850 million senior unsecured notes issuance, raising over US$4.5 billion in unsecured capital during 2025.
This article is based on an official press release from Avolon.
Global aviation finance company Avolon has announced the successful pricing of a private offering of US$850 million in senior unsecured notes. According to the company’s official statement released on December 3, 2025, this transaction represents the final major financing activity of a prolific year, bringing Avolon’s total unsecured capital raising for 2025 to over US$4.5 billion.
The newly priced notes carry a coupon of 4.700% and are set to mature in 2031. This issuance underscores the lessor’s ability to access liquidity at competitive rates, following a series of credit rating upgrades earlier in the year. The offering is expected to close on or about December 11, 2025, subject to customary closing conditions.
The notes were issued by Avolon Holdings Funding Limited, a wholly owned subsidiary, and are fully and unconditionally guaranteed by Avolon Holdings Limited. In its disclosure, the company outlined that the proceeds from this offering will be utilized for general corporate purposes, which may include the repayment of outstanding indebtedness.
Key financial details provided in the announcement include:
The notes are being offered to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S. As is standard for such private offerings, the notes have not been registered under the U.S. Securities Act.
This December issuance caps a highly active fiscal year for the Dublin-based lessor. Avolon has consistently accessed the debt markets throughout 2025 to extend its maturity profile and diversify funding sources. According to data released by the company, the aggregate unsecured capital raised this year exceeds US$4.5 billion.
The company’s funding timeline for 2025 highlights a strategy of frequent market engagement:
Analyzing the coupon rates across Avolon’s 2025 issuances reveals a positive trend for the company’s cost of capital. The interest rate on senior unsecured notes has compressed from 5.375% in March to 4.700% in December. This reduction signals tightening spreads and robust investor demand for Avolon’s debt.
We attribute this improved pricing power largely to the credit rating upgrades Avolon received in May 2025. Following those adjustments, the company now holds a BBB (Stable) rating from Fitch and a Baa2 (Stable) rating from Moody’s, while S&P revised its outlook to Positive. These investment-grade metrics are critical for lessors seeking to maintain low borrowing costs in a capital-intensive industry. Avolon’s financial activities support a massive operational footprint. As of late 2025, the company reports an owned, managed, and committed fleet of over 1,100 aircraft. This scale allows the lessor to play a pivotal role in global airline fleet renewal.
In the third quarter of 2025 alone, Avolon placed orders for 90 new technology aircraft, reinforcing its growth trajectory. The company is currently owned 70% by an indirect subsidiary of Bohai Leasing Co., Ltd., and 30% by ORIX Aviation Systems.
“The net proceeds from the offering will be used for general corporate purposes, which may include the repayment of outstanding indebtedness.”
, Avolon Press Release, December 3, 2025
Transaction Overview and Financial Terms
Strategic Context: A Record Year for Capital Raising
AirPro News Analysis: Improving Cost of Debt
Operational Scale and Market Position
Frequently Asked Questions
Sources
Photo Credit: Avolon