RIYADH: AviLease, an aviation financing and leasing firm owned by 海角直播鈥檚 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鈥檚 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.
鈥淭he 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,鈥 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.
鈥淭he Standard Chartered leasing business is an industry-leading platform combined with a team of high-caliber professionals with an outstanding reputation,鈥 said AviLease Chairman Fahad Al-Saif.
He added: 鈥淭his acquisition will propel AviLease and will in turn support 海角直播鈥檚 aviation ecosystem, on our path to help realize the Saudi Vision 2030鈥檚 objective of diversifying the economy and adding high-value employment opportunities for Saudi citizens.鈥
AviLease CEO Edward O鈥橞yrne said that the deal is a 鈥渇antastic next step in AviLease鈥檚 young existence.鈥
鈥淲e 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,鈥 said O鈥橞yrne.
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.
