The Chinese state may bail out debt-laden HNA, the majority shareholder in Irish aircraft lessor, Avolon’s biggest backer. The news emerged as Avolon announced it was borrowing €575 million through bonds issued by subsidiaries. The bonds must be repaid in 2040 and have interest rates varying from 3.228 per cent to 6.779 per cent. Bohai Leasing owns 70 per cent of Avolon, whose other shareholder is New York- and Tokyo-listed Orix Corporation. Reports citing sources close to the talks said most of HNA’s airline shares would be sold to China’s three top carriers: Air China, China Southern Airlines and China Eastern Airlines.

Source: The Irish Times February 20, 2020 20:06 UTC