Avolon Secures $455M Unsecured Credit Facility from Middle Eastern Banks

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

Global Airlines finance company Avolon has successfully closed a new $455 million unsecured revolving credit facility, tapping into Middle-East liquidity pools to diversify its capital sources. The dual-tranche facility, which includes both conventional and Islamic financing structures, features a five-year tenor and is supported by a syndicate of five banks.

According to an official press release from the company, this latest transaction brings Avolon’s total new unsecured financing for 2026 to $2.5 billion across public and private markets. The move highlights a growing appetite among Middle Eastern financial institutions for high-quality lending opportunities within the global aviation sector.

By securing this long-term capital, Avolon continues to strengthen its balance sheet while expanding its global funding platform to support future fleet acquisitions and growth initiatives.

Structuring the $455 Million Credit Facility

Syndicate and Tranche Details

The newly announced $455 million facility is structured to accommodate diverse financial frameworks, comprising both a conventional tranche and an Islamic tranche. Avolon noted in its press release that the syndicate is primarily composed of Middle Eastern banks, reflecting a strategic pivot toward regional liquidity.

Emirates NBD Capital Limited served as the Coordinator, Initial Mandated Lead Arranger, and Bookrunner for the transaction. Dubai Islamic Bank took on the role of Senior Islamic Mandated Lead Arranger, while Standard Chartered Bank acted as a Mandated Lead Arranger. Additional support came from Emirates Islamic Bank and Al Ahli Bank of Kuwait as Lead Arrangers, with Sharjah Islamic Bank participating as an Arranger.

Strategic Expansion and Leadership Commentary

Avolon’s 2026 Financial Trajectory

The successful closure of this facility marks a significant milestone in Avolon’s 2026 financial strategy. The company has now raised $2.5 billion in new unsecured financing since the start of the year, demonstrating robust access to both public and private capital markets. As of March 31, 2026, Avolon reported an owned, managed, and committed fleet of 1,131 Commercial-Aircraft, serving 139 airlines across 61 countries.

In the company’s press release, Avolon Chief Financial Officer Ross O’Connor emphasized the strategic importance of the Middle Eastern partnership:

“This facility marks another step forward in the continued expansion of Avolon’s global funding platform. Securing significant, long-term unsecured capital from Middle Eastern banks underlines the strength of our credit proposition and the confidence lenders have in our strategy…”

, Ross O’Connor, Chief Financial Officer, Avolon

O’Connor further noted that the company views the Middle East as a crucial partner for its next phase of disciplined growth.

Market Context and Strategy

AirPro News analysis

The aviation leasing sector is increasingly looking beyond traditional Western banking relationships to secure competitive, long-term capital. Avolon’s successful integration of an Islamic financing tranche alongside conventional debt illustrates a sophisticated approach to capital structuring. By engaging institutions like Dubai Islamic Bank and Emirates NBD Capital, lessors can tap into deep regional liquidity pools that are actively seeking high-yield, asset-backed opportunities.

Furthermore, the ability to raise $2.5 billion in unsecured financing within the first four months of 2026 suggests that top-tier lessors maintain strong credit propositions despite broader macroeconomic uncertainties. Unsecured revolving credit facilities provide companies like Avolon with the agility needed to execute rapid fleet acquisitions and manage capital efficiently without tying up specific aircraft assets as collateral. We expect this trend of geographic diversification in aviation funding to continue as lessors scale their global operations.

Frequently Asked Questions (FAQ)

What is the total value of Avolon’s new credit facility?

Avolon closed a new unsecured revolving credit facility valued at $455 million.

Which banks were involved in the transaction?

The syndicate includes Emirates NBD Capital Limited, Dubai Islamic Bank, Standard Chartered Bank, Emirates Islamic Bank, Al Ahli Bank of Kuwait, and Sharjah Islamic Bank.

How much unsecured financing has Avolon raised in 2026?

According to the company’s press release, Avolon has raised a total of $2.5 billion in new unsecured financing across public and private markets in 2026.

What is the size of Avolon’s fleet?

As of March 31, 2026, Avolon’s owned, managed, and committed fleet consists of 1,131 aircraft.

Sources: Avolon