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Avolon forms JV aircraft leasing business with Wells Fargo & Company

18-Jan-2013 8:19 AM

Avolon announced (17-Jan-2013) its intention to partner with Wells Fargo & Company, a leading diversified financial services company, to form a new JV aircraft leasing business called Avolon Capital Partners Limited (ACP). ACP will build an aircraft fleet primarily through sale and leaseback transactions with airlines on new aircraft. ACP will focus on young, fuel-efficient narrowbody and widebody aircraft with an initial target portfolio size of USD500 million. Wells Fargo will be the majority shareholder and provide banking and debt financing facilities for the business. ACP will be headquartered in Dublin. Existing Avolon and Wells Fargo team members will serve as ACP’s management team and provide business expertise. ACP will combine the aircraft leasing expertise of Avolon and the leading international financial franchise of Wells Fargo. The formation of ACP is subject to a number of regulatory approvals. Since its inception in 2010, Avolon has raised a total of USD3.7 billion of debt capital from a wide range of financial institutions, including Wells Fargo, who has been a significant lender to Avolon since Jan-2011. Avolon CFO Andy Cronin will serve as a director on the board of ACP. Daire O’Criodain, an executive at Avolon, who has extensive experience in the aircraft leasing industry, will serve as ACP’s managing director. Mr Cronin said the JV is a natural evolution of the company's relationship with Wells Fargo. [more - original PR]