Avolon Establishes US$1.5 Billion Commercial Paper Programme

Avolon has established a US$1.5 billion commercial paper programme to expand its funding sources and enhance short-term liquidity for aircraft leasing and general corporate purposes.

The programme, established through wholly owned subsidiary Avolon Aerospace Leasing Limited (AALL), allows the issuance of short-term unsecured commercial paper with up to US$1.5 billion outstanding at any time. The notes will be fully and unconditionally guaranteed by Avolon and certain subsidiaries and will rank equally with the company’s other unsecured and unsubordinated debt.

Avolon said the programme will complement its existing revolving credit facilities by providing a flexible and cost-effective source of short-term funding. Proceeds may be used for general corporate purposes, including aircraft acquisitions and the refinancing of existing debt.

Chief Financial Officer Ross O’Connor said the programme represents another milestone in Avolon’s funding and liquidity strategy, strengthening the company’s financial flexibility while broadening its investor base. He added that the initiative is supported by Avolon’s investment-grade credit ratings, strong liquidity position and robust balance sheet.