PIF’s AviLease to acquire Standard Chartered’s aircraft leasing unit for $3.6bn

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. Photo/Supplied
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Updated 28 August 2023
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PIF’s AviLease to acquire Standard Chartered’s aircraft leasing unit for $3.6bn

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.


Egypt signs energy MoUs with Syria, expanding regional supply role 

Updated 5 sec ago
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Egypt signs energy MoUs with Syria, expanding regional supply role 

JEDDAH: Egypt has signed two memorandums of understanding with Syria to supply natural gas for electricity generation and provide petroleum products, as Cairo moves to strengthen its position as a regional energy transit hub.

According to Egypt’s petroleum ministry, the agreements were signed during talks between its Minister of Petroleum and Mineral Resources Karim Badawi and a Syrian delegation led by Deputy Minister of Energy for Oil Affairs Ghiath Diab.

The deals were formalized by Diab and Mohamed El-Bagoury, head of legal affairs at the Egyptian ministry. 

The agreements come as Egypt seeks to capitalize on its liquefied natural gas plants, pipelines and floating regasification units to position itself as a regional energy hub. 

Syria’s energy sector has been severely weakened by years of conflict and damaged infrastructure, prompting redevelopment efforts and regional cooperation which underscores the importance of external partnerships in rebuilding the country’s power and oil networks. 

“The meeting reflects Egypt’s role as a regional logistics hub for all types of energy, both fossil and non-fossil,” the ministry said in a statement, reaffirming its readiness to provide technical expertise and support to Syria’s energy sector as part of efforts to assist the Syrian people. 

Under the first MoU, Egypt will cooperate in supplying gas to Syria for power generation, using its existing infrastructure, including regasification vessels and transmission networks. 

The second agreement relates to meeting the country’s needs for petroleum products. 

The meeting also discussed opportunities to rehabilitate Syria’s oil and gas infrastructure and benefit from Egyptian expertise in the sector. 

The deals with follow recent energy cooperation with Lebanon and earlier arrangements with Cyprus aimed at routing Eastern Mediterranean gas through Egypt’s facilities. 

Speaking at the ADIPEC conference in Abu Dhabi in November, Badawi highlighted Egypt’s growing role as a regional hub for energy transit and trade, supported by fully integrated and ready infrastructure. 

He said this demonstrated the country’s ability to provide a fast, cost-effective and reliable route for delivering East Mediterranean gas resources to global markets at competitive prices. 

Badawi cited plans to connect Cyprus’s Cronos gas field to Egypt’s network as a key step toward deeper regional integration, allowing current and future Cypriot discoveries to be processed through Egyptian liquefaction and export facilities.