Only eight months after its formation, fast-growing aircraft lessor Avolon has returned again to the market for another significant injection of capital – whilst at the same time agreeing a sizeable sale and leaseback arrangement with four separate customers. The company now has a committed fleet of 60 aircraft valued at $2.8bn.

The second capital raising of $650m comprises $250m of equity and $400m of debt finance.  It comes with news of agreed terms to acquire 11 new aircraft, under sale and leaseback structures, from four airlines in Europe, Asia and Australia.

The $250m of additional equity has been raised from Avolon's existing investors: Cinven, CVC Capital Partners and Oak Hill Capital Partners. A number of other investors have also participated in the equity raising including Oak Hill Advisors. The $400m of debt finance was provided by three European institutions - DVB, Nord LB and KfW IPEX-Bank - in separate bilateral transactions.

This additional capital raising brings the total capital raised by Avolon, since launch in May 2010, to in excess of $2bn comprising $1bn of equity and $1bn of debt finance.

At the same time Avolon is acquiring 11 new aircraft, under sale and leaseback structures, from four airlines based in Europe, Asia and Australia. Two of the aircraft were delivered new in 2010 and the remainder will deliver in the next twelve months. The 11 aircraft comprise five Airbus A320s and six Boeing 737-800s and include:

• two A320s leased to Philippine Airlines - The Philippines;

­• three A320s to be leased to Indigo Airlines – India;

­• three Boeing 737-800s to be leased to Air Berlin – Germany; and

­• three 737-800s to be leased to Virgin Blue – Australia.

Dómhnal Slattery Avolon’s chief executive explained: “Since the business was launched in May, 2010, Avolon has delivered on each of its business objectives. These include initial orders for new aircraft with both Boeing and Airbus together with the completion of sale and leaseback and portfolio transactions totalling over 40 aircraft on lease to a globally diverse pool of airlines. We have built a strong team to sustain our growth and deliver on our objectives for 2011 and beyond as we continue to create value for our shareholders. Avolon’s existing customers include 18 airlines across five continents.”

The news comes only one month after the company revealed an order for eight Airbus A320 aircraft valued at over $600m at current list prices. Avolon’s committed fleet now stands at over 60 aircraft.

Avolon’s meteoric growth indicates a management team in a hurry – led by Slattery.

Slattery began his aviation financing career in 1989, initially in marketing roles with Guinness Peat Aviation and GECAS. In 1994, he established his own aircraft advisory and investment banking services company, International Aviation Management Group (IAMG). Over the following seven years, IAMG arranged aircraft asset and related transactions amounting to more than $5bn in value on behalf of a wide range of leading airline and investor clients worldwide. In 2001 the Royal Bank of Scotland Group acquired IAMG as the launch platform of RBS Aviation Capital.

Slattery was chief executive of this business from 2001 to 2004 and went on to become managing director of the Structured Asset Finance business for the Royal Bank of Scotland Group. He continued as a non-executive director of RBS Aviation Capital until January, 2008.