ORIX Corporation to acquire 30% shareholding of Avolon Holdings Limited,
a leading global aircraft leasing company located in Ireland
TOKYO, Japan August 8, 2018 - ORIX Corporation (ORIX) announced today that, via its group company in Ireland, ORIX
Aviation Systems Limited (ORIX Aviation), which is not only an established aircraft leasing and trading company but also a leading S&P ranked aircraft asset manager, has signed an agreement to acquire 30% of the outstanding shares of
Ireland-based Avolon Holdings Limited (Avolon), which is a leading global aircraft leasing company. The acquisition is expected to be completed after the necessary approvals and/or licenses are obtained.
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Reason for the acquisition of the shares
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ORIX entered into the aircraft finance lease business in 1978 and has accumulated aviation experience and knowledge over the past 40 years. In
1991, it established ORIX Aviation in Ireland to get a foothold in the aircraft operating lease business. Since formation ORIX Aviation has grown to be a major aircraft lessor, asset manager and trading company. In addition to the leasing of its own
portfolio aircraft, it has developed a unique asset management platform that attracts both domestic Japanese and international investors, and is the only S&P ranked aircraft lease servicer worldwide with USD10 billion of aircraft assets
under management. At present, ORIX Aviation owns and manages over 200 aircraft and leases them to more than 70 airlines located in over 30 countries. ORIX Aviation is headquartered in Dublin with an office in Hong Kong.
Avolon is a leading global aircraft leasing company focused on acquiring, managing, leasing and selling commercial aircraft. Avolon is
headquartered in Ireland, with offices in the United States, the UAE, Singapore, Hong Kong and China. In May 2010, Avolon was launched by an experienced team of aircraft leasing and financing professionals, and operated as a private company until
the initial public offering of the business in December 2014. Avolon operated as a public company listed on the New York Stock Exchange under the symbol AVOL before being acquired by Bohai in January 2016. Subsequently, Avolon became the
core aircraft leasing brand for Bohai and its parent, HNA Group. In April 2017, Avolon acquired all of the issued and outstanding equity interest of C2, the commercial aircraft leasing business of CIT Group.
Avolon focuses on acquiring and maintaining a portfolio of young, modern, fuel efficient commercial aircraft while seeking to maximize
long-term earnings growth and cash flow generation and drive attractive risk-adjusted returns through the aviation industry cycle. The business is operated on a global basis, maintaining a diverse fleet of aircraft provided to airlines across
different geographic regions. As of June 30, 2018, Avolons owned managed and committed portfolio consisted of 890 aircraft, including 532 owned aircraft, 30 managed aircraft and 328 committed aircraft.
The worldwide demand for aircraft is projected to increase due to the rise in LCCs and the increase in global passenger traffic also in line
with the rapid economic growth of markets, in particular emerging markets. The number of the worldwide commercial aircraft fleet is expected to rise from 24,400 in 2017 to 48,540 in 2037, and passenger traffic is expected to grow by an average of
4.7% per year*.