China-based leasing company Bohai Leasing is to buy a 20 per cent stake in Ireland-based Avolon Holdings for US$429 million. A unit of China’s aviation and shipping conglomerate HNA Group, Bohai expects the offer to be formally launched by end-July following the approval of its shareholders. The transaction will provide HNA access to a global aircraft leasing market that is currently dominated by GE Capital and AerCap Holdings.

Avolon chairman Denis Nayden said: “Our objective at Avolon is to accelerate our growth and build on our position as a leading global aircraft lessor. Bohai Leasing’s strategic investment enhances Avolon’s profile, positioning and relationships in the Chinese aviation market – a market which we believe offers one of the most compelling growth opportunities in global aviation over the next two decades.”

Bohai CEO Chris Jin said: “Avolon is a leading global player in the aircraft leasing industry and we are delighted to announce this strategic investment. Our vision at Bohai is to build each of our transportation finance businesses into global leaders for the benefit of Bohai shareholders.”