RIYADH: AviLease, an aviation financing and leasing firm owned by Saudi Arabia’s sovereign wealth fund, has signed an agreement to purchase the aircraft leasing business of Standard Chartered, which also includes Dublin-based Pembroke Group.
According to a press statement, AviLease is acquiring Standard Chartered’s aircraft leasing business for $3.6 billion.
The Pubic Investment Fund-owned company will acquire a portfolio of 100 narrow-body aircraft and will also become a servicer for another 22 aircraft, it added.
“The combined platform will own and manage 167 of the latest technology, fuel-efficient aircraft, consisting of 145 owned valued at circa $6 billion and 22 managed aircraft valued at circa $800 million leased to 46 airlines globally,” the press release said.
To complete the deal, AviLease arranged $2.1 billion of competitive bridge financing commitments from four banks including BNP Paribas, Citibank N.A., HSBC Bank Middle East, and MUFG Bank.
“The Standard Chartered leasing business is an industry-leading platform combined with a team of high-caliber professionals with an outstanding reputation,” said AviLease Chairman Fahad Al-Saif.
He added: “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 that the deal 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 our investment strategy,” said O’Byrne.
He further noted that the acquisition will help AviLease become a top-10 global aircraft lessor in the future.
The transaction is expected to close by the fourth quarter of this year.
Citigroup acted as financial adviser to AviLease for this transaction, while Allen & Overy and Arthur Cox LLP served as legal counsel.
