RIYADH: Saudi-backed AviLease has closed a $1.5 billion unsecured revolving credit facility to support its international expansion and investment in next-generation, fuel-efficient aircraft.
The conventional three-year facility was oversubscribed, attracting commitments from 20 global banks, including eight new lenders from Europe, Asia, and North America, the company said in a release.
Owned by Saudi Arabia’s Public Investment Fund, AviLease is central to the Kingdom’s push to diversify its economy and develop a globally competitive aviation industry under its Vision 2030 strategy.
In a statement, Edward O’Byrne, CEO of AviLease, said: “We are pleased to close this facility, noting the strong international demand. Together with our existing revolver of $750 million, it brings our immediately‑available committed facilities to $2.25 billion, spanning 25 local and global lenders.”
He added: “This enhanced liquidity positions us to continue our expansion, investing in latest‑technology, fuel‑efficient aircraft while maintaining the conservative financial policy that underpins our strategy.”
Speaking to Arab News he added that the deal was completed before the firm received a credit rating and was oversubscribed two times.
The enhanced liquidity, according to the CEO, represents about 30 percent of the company’s balance sheet and will allow AviLease to pursue further global transactions while maintaining a disciplined financial policy.
Headquartered in Riyadh, AviLease manages a fleet of 200 aircraft — largely composed of new-technology models — leased to 48 airline customers worldwide.
Earlier in April, AviLease signed a memorandum of understanding with Turkish Airlines for the long-term lease of eight Airbus A320neo aircraft. Two aircraft have already been delivered, with the remainder scheduled for delivery throughout 2025.
In March, the lessor delivered three A320neo aircraft to SDH Wings, a joint venture between AviLease and China’s sovereign wealth fund, in which the Kingdom holds a 10 percent stake.
Commenting on Saudi market potential, O’Byrne said he expects around 350 to 400 aircraft deliveries by the end of the decade.
The company is also advancing its sustainability efforts by only investing in the latest-generation technology aircraft, which reduce fuel burn by up to 10 percent for narrow-body jets and 25 percent for wide-bodies.
The CEO also noted the firm’s interest in Saudi Arabia’s potential for e-fuels, noting it was a competitive advantage for the Kingdom in the future.
Beyond financing, AviLease is contributing to the development of local talent. The company recently partnered with Prince Sultan University and Riyad Bank to deliver an aviation financing course to over 150 professionals.
O’Byrne said that when the firm started in 2022, it was given a double mandate by PIF — firstly to build a top ten leasing company, and secondly to help grow a robust aviation ecosystem.
He emphasized ongoing efforts to train Saudi graduates and finance professionals to position Riyadh as a global aviation finance hub, revealing that 47 percent of AviLease’s workforce is from the Kingdom.
In terms of profitability, O’Byrne said the company currently operates with a balance sheet of around $8 billion, generating net income margins in the low teens.
His objective is to scale up to a $20 billion balance sheet to deliver a net income line in the high number for shareholders, which he believes will be looking for 20 percent, by 2030. O’Byrne added that the company is about two years ahead of its business plan in this regard.
AviLease has also been building strategic joint ventures, including with a Sichuanese sovereign fund, and is currently working on another with a major Saudi investor to seize local opportunities.
In October, AviLease expanded its fleet with the acquisition of nine aircraft from global lessor Avolon, following a prior deal for 13 aircraft.
It also completed its first transaction with BBAM through the acquisition of a Boeing 787-9, marking the aircraft’s entry into AviLease’s portfolio and expanding its customer base in the Americas.
