Aircraft lessor Avolon has announced an additional capital raising of $465m, bringing the total value of funds raised since May 2010 to in excess of $2.5bn.

The capital raising is the third announced by Avolon in eight months and consists of a fully underwritten long-term debt facility (including warehouse capacity) from a consortium of three leading US banks. The transaction was led and structured by Wells Fargo Securities and the consortium includes Citi and Morgan Stanley. It is intended that proceeds will be used to fund Avolon’s growing aircraft fleet and will significantly increase the company’s underwriting capacity

The additional financing will support the continued growth of the Avolon fleet which currently stands at over 60 committed aircraft, valued at over $2.8bn.

Avolon has already raised over $1bn in debt financing from a range of leading European aviation finance banks including DVB, Nord LB, KfW IPEX-Bank, UBS, Deutsche Bank, BNP Paribas and Credit Agricole CIB. This initial financing included a $400m warehouse facility which was the first facility of this type to be successfully executed in three years.

Andy Cronin, Avolon’s chief financial officer commented: “We are pleased to announce a further capital raising which brings our total capital raised to over $2.5bn. This debt raising is an important step in broadening our lender base, introducing three new US-based lenders to Avolon. These significant commitments are an endorsement of the Avolon business model, the industry-leading team we have assembled and the strength of the portfolio we are building. International capital is accessible to prudent, well-managed businesses, with credible long-term growth prospects.”

Jessica Gray, head of Commercial Operating Asset Finance at Wells Fargo Securities, added: “We are delighted to announce our partnership with Avolon and to provide capital to a business that has compelling growth prospects. This commitment reflects our confidence in the Avolon team, the strength and reputation of their investor group and the quality of Avolon’s growing aircraft portfolio. We look forward to continuing to work with the Avolon team as the business grows.”

Avolon is rapidly establishing itself as one of the leading global players in the aircraft leasing sector, leveraging off the strong financial backing of its owners and the extensive trading history and senior industry relationships of its management team. The primary asset focus of the business is on young fuel-efficient narrow-body (single-aisle) aircraft such as the Airbus A320 family and Boeings 737NG family. In addition, Avolon also invests in best-in-class wide-body (twin-aisle) aircraft such as the Airbus A330 family and Boeing 777 family.

Wells Fargo Securities is the trade name for certain capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Securities, LLC, member FINRA and SIPC, and Wells Fargo Bank, National Association.

Commercial Operating Asset Finance has a 20-year history as an arranger, lender and principal investor in structured finance transactions across a variety of asset classes with a primary focus on transportation and other operating assets.