Avolon revises bond sale from $1.8bn to $2.5 bn

Strong investor demand prompted Irish aircraft lessor Avolon to increase the amount it is borrowing through a bond sale to $2.5 billion (€2.2 billion) from $1.8 billion.

Dublin-based Avolon said on Friday it had raised $2.5 billion from global lenders through a bond issue.

The company originally sought $1.8 billion but said it significantly increased this to reflect “institutional investors’ demand”.

The bonds are repayable between 2022 and 2026 at interest rates between 3.625 per cent and 4.375 per cent. Avolon and some of its subsidiaries fully and unconditionally guarantee the bonds.

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Earlier this week, three agencies – Moody’s, Fitch and S&P – which assess businesses’ ability to meet their liabilities, rated Avolon’s debt as investment grade, meaning they believe there is little risk the company will default.

Andy Cronin, Avolon chief financial officer, said the strong market demand reflected confidence in the company’s credit profile and long-term prospects.