Japan-based financial services group Orix, through its wholly owned subsidiary Orix Aviation Systems, has agreed to purchase a 30% stake in Ireland-based aircraft leasing company Avolon for $2.2bn.

The stake will be purchased from China’s HNA Group unit Bohai Capital, which acquired Avolon for $2.5bn in 2015.

Subject to customary closing conditions and Bohai shareholder approval, the deal is scheduled to be closed by the last quarter of this year.

Avolon CEO Dómhnal Slattery said: “ORIX is a strong, investment grade institution with a proven track record in the leasing sector over multiple industry cycles.

“ORIX is a strong, investment grade institution with a proven track record in the leasing sector over multiple industry cycles.”

“This transaction builds on this team’s track record of partnering with leading global financial institutions as shareholders. We will benefit from ORIX’s experience and relationships as we continue to build Avolon’s financial strength and industry franchise.

“Our new shareholder structure and the associated enhancements to our governance framework will also accelerate our momentum towards an investment grade rating – a key objective for our business.”

In addition, the deal is expected to diversify and boost the financial profile of Avolon’s shareholders, improve Avolon’s profile in the Japanese financial markets and create opportunity for further collaboration with Orix Aviation.

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Bohai and Orix will sign a new shareholder agreement that includes a governance framework with significant protections for the minority shareholder.

On completion of the deal, the revised Avolon board will include two Orix directors, three Bohai directors, Avolon CEO Dómhnal Slattery as executive director, and one independent director.