Avolon Raises US$420M in Largest European Samurai Loan Issuance

This article is based on an official press release from Avolon.

On March 4, 2026, Dublin-based global aviation finance company Avolon announced the successful completion of its inaugural Samurai loan facility. According to the company’s press release, the transaction raised the equivalent of US$420 million in unsecured financing, marking a significant milestone in the lessor’s capital strategy.

The transaction stands as the largest and longest-tenor debut Samurai issuance by a European company to date. Furthermore, it represents Avolon’s first borrowing outside of traditional US dollar-denominated financing, highlighting a strategic push to diversify its capital base by tapping into the Japanese institutional market.

For a highly capital-intensive industry like aviation leasing, securing diverse and reliable funding streams is critical. By accessing Japanese capital, Avolon has demonstrated its ability to attract global institutional investment while optimizing its overall capital stack.

Transaction Details and Syndicate Structure

The newly secured financing is structured as a dual-tranche, five-year unsecured facility. Based on the official announcement, the total US$420 million equivalent is broken down into approximately US$346 million and ¥11.7 billion (approximately US$75 million).

A “Samurai loan” is a cross-border syndicated loan structured and distributed within the Japanese domestic loan market. It is typically utilized by foreign issuers seeking to access Japanese capital. While Avolon’s functional currency remains the US dollar, the company noted that the spread dynamics and diversification benefits of the Japanese market presented a highly favorable window for this transaction.

Banking Partners and Lead Arrangers

The financing attracted strong market demand, resulting in a 12-bank syndicate. Notably, the press release highlights that nine of these institutions are new banking partners for Avolon. All participating lenders are either Japanese banks or international banks operating through Tokyo branches.

The transaction was arranged by Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Trust Bank (SMTB), and the Development Bank of Japan (DBJ), acting as mandated lead arrangers and bookrunners. MUFG also served as the facility agent.

“Avolon visited many different financing markets, both secured, unsecured, and geographically diverse. MUFG was able to take them through the idea of the Samurai loan, and now the spread dynamics work for them… Taking all into consideration, new bank relationships, currency and diversification purposes, there was a window for us to approach the market with a transaction that worked within the context of their overall capital stack.”

Broader Financial Strategy and Q1 2026 Activity

The Samurai loan is part of a highly active first quarter for Avolon’s treasury team. As of early March 2026, the company stated it has raised US$1.9 billion in new unsecured facilities.

This total includes a major private offering priced on February 18, 2026. Through its subsidiary, Avolon Holdings Funding Limited, the company priced a US$1.5 billion offering consisting of US$750 million of 4.200% notes due 2029 and US$750 million of 4.850% notes due 2033.

AirPro News analysis

We view Avolon’s entry into the Japanese domestic loan market as a prudent hedge against over-reliance on traditional USD debt markets. The heavy oversubscription of this facility, coupled with the onboarding of nine new banking relationships, signals a robust global appetite for unsecured lending to top-tier aviation leasing companies. Despite broader macroeconomic fluctuations, institutional lenders clearly see long-term stability in scaled aviation assets.

“This inaugural Samurai Facility further diversifies our capital base and expands our global banking relationships through the addition of new institutional lenders. This transaction further demonstrates the strong global appetite for unsecured lending to aviation leasing companies and reflects confidence in Avolon’s performance and growth outlook.”

Avolon’s Market Position and Financial Health

To understand the strong institutional demand for Avolon’s debt, it is helpful to look at the company’s current market position. Founded in 2010, Avolon has grown to become the third-largest aircraft leasing company globally. As of December 31, 2025, the company reported an owned, managed, and committed fleet of 1,132 aircraft, serving 139 Airlines across 61 countries.

The company’s recent Financial-Results has been exceptionally strong. According to their full-year 2025 results, net income increased 29% year-over-year to US$591 million, with total revenue reaching US$3 billion.

This financial discipline has been recognized by major rating agencies. In May 2025, Fitch upgraded Avolon to ‘BBB’, Moody’s upgraded it to ‘Baa2’, and S&P Global Ratings revised its outlook on Avolon’s ‘BBB-‘ rating to positive, citing improving profitability and favorable demand conditions.

Frequently Asked Questions

What is a Samurai loan?

A Samurai loan is a yen-denominated or dual-tranche cross-border syndicated loan issued in Japan by a non-Japanese company. It allows foreign companies to tap into the Japanese domestic capital market and diversify their investor base.

How much did Avolon raise in its inaugural Samurai loan?

Avolon raised the equivalent of US$420 million, split between approximately US$346 million and ¥11.7 billion (approx. US$75 million).

Who were the lead arrangers for this transaction?

The transaction was arranged by Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Trust Bank (SMTB), and the Development Bank of Japan (DBJ).

Sources: Avolon Official Press Release