- Combined entity to own and manage 167 fuel-efficient aircraft on lease to 46 airlines worldwide
- Transaction will accelerate AviLease’s growth plans to become a top-10 global lessor by 2030
- Acquisition supports Vision 2030 aim for the nation to become a global travel hub by the end of the decade
PIF-owned AviLease, which aims to be a leading global institution across the aviation leasing value chain, has announced an agreement to purchase the aircraft leasing business of Standard Chartered.
The transaction will accelerate AviLease’s growth plans to become a top-10 global lessor by the end of the decade, in line with Vision 2030, the nation’s blueprint for economic reform.
As part of the $3.6bn acquisition, the Riyadh-based lessor will acquire a portfolio of 100 narrow-body aircraft while also becoming servicer for another 22 narrow-body aircraft. The combined platform will own and manage 167 of the latest fuel-efficient aircraft for 46 airlines globally.
AviLease successfully arranged $2.1 billion of competitive bridge financing commitments from four banks, as part of the transaction: BNP Paribas, Citibank N.A., HSBC Bank Middle East, and MUFG Bank. The transaction is expected to close in Q4 2023.
AviLease Chairman, Fahad Al-Saif, said: “The Standard Chartered leasing business is an industry-leading platform combined with a team of high-calibre professionals with an outstanding reputation. This acquisition will propel AviLease and will in turn support Saudi Arabia’s aviation ecosystem, on our path to help realize the Saudi Vision 2030’s objective of diversifying the economy and adding high-value employment opportunities for Saudi citizens.”
AviLease CEO, Edward O'Byrne, said: “This acquisition is a fantastic next step in AviLease’s young existence. We are purchasing a very high-quality portfolio of narrow-body aircraft on lease to top-tier airlines globally. The transaction accelerates the scale-up and lessee diversification of our fleet, demonstrating our ability to execute on our investment strategy.”
Simon Cooper, CEO of Corporate, Commercial & Institutional Banking and Europe & Americas at Standard Chartered, said: “We wish AviLease every success with its strategy to develop further the business for continued growth, and delivering on its ambition, to be a significant global player in the aviation leasing sector. I want to thank our Standard Chartered Aviation Finance colleagues, whose strong commitment to building an outstanding franchise over more than 15 years has enabled the success of this transaction.”
As a driver of Vision 2030, PIF is developing and growing Saudi Arabia’s aviation ecosystem so that it becomes a global travel hub by the end of the decade.
From right to left: AviLease Chairman Fahad Al Saif, AviLease CEO Edward O'Byrne, PIF’s Deputy Governor and Head of MENA Investments Yazeed AlHumied, Standard Chartered’s CEO of Corporate, Commercial & Institutional Banking and Europe & Americas Simon Cooper, and PIF’s Head of Direct Investments for MENA Raid Ismail.
