DLA Piper advises Avation on USD1 billion Global Medium Term Note Programme and USD300 million drawdown

DLA Piper has advised Avation Plc, a commercial passenger aircraft leasing company, through its wholly owned subsidiary Avation Group (S) Pte. Ltd., on the establishment of its new USD1 billion Global Medium Term Note (GMTN) Programme. Structured to qualify as Qualified Debt Securities (QDS) under Singapore law, the Programme allows interest payments to qualifying non-resident investors to be exempt from Singapore withholding tax, enhancing its appeal to international investors and supporting Avation’s access to global capital markets.

The firm also advised on the successful issue of the inaugural USD300 million high-yield bond issued under the GMTN Programme. The senior unsecured notes, issued and guaranteed by the Company, are due 15 May 2031 with a coupon of 8.5%.

The transaction comes at a pivotal time for Avation, which continues to report strong trading performance and continued fleet growth. As of 30 June 2025, Avation’s fleet comprised 33 aircraft leased to 16 airlines across 14 countries, with all aircraft currently on lease.

The DLA Piper team was led by US securities partner Philip Lee, Head of Finance, Asia and Head of Capital Markets, Asia Pacific, with support from senior associate Le Jing Ong, trainee Helena Pollock and legal officer Jenni Pham, all based in Singapore.

Philip Lee commented: “This deal represents an important milestone for the Asia corporate high-yield market, underscoring the continued investor appetite for single-B rated issuers in both the Regulation S and Rule 144A global markets. It also highlights our strength in the United States and English securities law, enabling us to support our client in achieving yet another landmark outcome.”