AviLease, a Saudi Arabian aircraft leasing company backed by the Public Investment Fund (PIF), has announced it has entered into a definitive agreement to acquire the aircraft leasing business of Standard Chartered, which includes Dublin-based Pembroke Group. The deal, valued at $3.6 billion, will boost AvilLease's portfolio and global presence, as well as support Saudi Arabia's vision of becoming a trade and tourism hub.
The acquisition will bring together two strategically complementary business, providing AviLeasing, global diversification and the opportunity to leverage Standard Chartered's best-in-class team and operating capabilities. As part of the acquisition, AviLease will acquire a portfolio of 100 narrow-body aircraft while also becoming a servicer for another 22 aircraft. 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 least to 46 airlines globally.
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. Equally important is the ability for us to combine forces and leverage the high-quality capabilities of the Standard Chartered platform. We have the ambition to become a top-10 global aircraft lessor and this acquisition brings us one step closer".
AviLease was established in 2022 by the PIF, one of the world's largest and most impactful wealth funds, with a long-term commitment and vision for AviLease. The company offers financing solutions or aircraft capacity to airlines, and invests by way of purchase and lease-back transactions with airlines, secondary portfolio acquisition from financial institutions, and direct orders from aircraft manufacturers. AviLease aims to become a leading aviation financer, delivering innovative solutions to airlines worldwide.
The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions and regulatory approvals. As part of the transaction, AviLease successfully arranged 2.1 billion of competitive bridge financing commitments from four banks: BNP Paribas, Citibank, HSBC Bank Middle East and MUFG Bank.