Bohai to bring Avolon under its fold

Bohai Leasing Co Ltd, a subsidiary of aviation and shipping conglomerate HNA Group, is set to bring Avolon Holdings Ltd under its umbrella after announcing definitive plans to buy the Irish aircraft leasing company for about $2.5 billion.

Consequent to the deal completion, Bohai Leasing will operate a fleet worth $8.48 billion and become the world's ninth-largest aircraft lessor. Bohai Leasing will fund the purchase through a combination of loans and internal resources, with 70 percent of the cost being met with bank borrowings.

"The government has been actively encouraging domestic enterprises to go global. Many of these companies have got the support and approval from the government to press ahead with the deal," Bohai Leasing said in a statement.