‎“AviLease” acquires Standard Chartered’s aircraft leasing and ‎operating platform

The aircraft leasing company “AviLease”, wholly owned by the Public Investment Fund (PIF), announced that it had concluded an agreement to acquire the aircraft operating and leasing platform of “Standard Chartered”, and this agreement also includes the Dublin-based Pembroke Company.

The acquisition process contributes to bringing together two complementary companies at the strategic level, which will result in diversification in the scope of the company and achieve global development and growth. It will also provide an opportunity to benefit from the expertise and experience of the best-in-class Standard Chartered team and available operational capabilities.

As part of this $3.6 billion agreement, the aircraft leasing company will acquire a diversified portfolio of 100 narrow-body aircraft and at the same time become the leasing company for another 22 aircraft. This step will enhance the company’s position as an integrated platform and entity that owns and operates a fleet of 167 of the latest and most fuel-efficient aircraft, consisting of 145 aircraft with an estimated value of $6 billion, and 22 aircraft operated by the company with an estimated value of about $800 million, and leased to about 46 airlines worldwide.

The aircraft leasing company, “AviLease”, succeeded, within the framework of this agreement, to secure a competitive temporary financing of $ 2.1 billion from four international banks: BNP Paribas, Citibank, HSBC Bank Middle East and Bank MUFG.

Fahad Al-Saif, Chairman of the Board of Directors of the Aircraft Leasing Company, said: “The aircraft financing business of Standard Chartered Bank is distinguished as a leading platform in the sector, as it brings together a team of highly qualified and experienced professionals and specialists with a professional record and distinguished reputation. Where the acquisition agreement contributes to strengthening the company’s position and empowering the economic system and the environment of the aviation sector in the Kingdom of Saudi Arabia, and it constitutes an assistive element in achieving one of the goals of the Kingdom’s Vision 2030, represented in the goals of diversifying the economy in the Kingdom, by providing additional job opportunities of high value for Saudi citizens.”

Edward O’Brien, CEO of the Aircraft Leasing Company, said: “This agreement and the acquisition process represent a high importance, and a new and prominent step in the company’s march. This agreement includes the purchase of a group of high-quality narrow-body aircraft leased to first-class airlines at the level of the world. The acquisition will also contribute to accelerating growth, expanding and diversifying the company’s fleet of leased aircraft, which is a clear indication of the company’s ability to implement its own and ambitious investment strategy.”

“In addition, it will enable us to combine our efforts and benefit from the high-quality capabilities of Standard Chartered’s aircraft financing business platform,” added O’Brien. This agreement will also enhance our efforts and aspirations towards achieving our ambitions to become among the top ten aircraft leasing companies in the world.”

Simon Cooper, Chief Corporate, Banking and Commercial Officer for Europe and the Americas, Standard Chartered, said: “We wish AviLease every success in its impressive strategy of continuing to work and dedicating efforts to develop the business with the aim of boosting growth. It continues to achieve its ambitions to be an active company and a prominent global partner in the aircraft leasing sector. I would like to thank our colleagues in the aircraft operating and leasing business platform of “Standard Chartered, as their unwavering commitment to building and establishing a distinguished business over more than 15 years has resulted in the success of this transaction.”

The aircraft leasing company, “AviLease”, will complete the works and procedures for completing the agreement in full in the fourth quarter of 2023.

Citibank assumed the task of financial advisor to the aircraft leasing company during the phases of the agreement, while Allen & Overy and Clifford Chanc took over the legal advice, and KPMG and PwC role as a tax advisor. The Financial Services Corporation “JP Morgan” also assumed the role of the company’s financial advisor.