Saudi PIF’s AviLease to acquire StanChart’s aircraft leasing business

Saudi PIF’s AviLease to acquire StanChart’s aircraft leasing business

Image courtesy: Mustafa Yalcin/ Getty Images

AviLease, owned by Saudi Arabia’s Public Investment Fund, has agreed to acquire Standard Chartered’s aviation finance business for $3.6bn. The business includes Dublin-based Pembroke Group.

The Saudi Arabian jet lessor will acquire a portfolio of 100 narrowbody aircraft and become a servicer for another 22 jets. The combined platform will own and manage 167 aircraft, consisting of 145 owned valued at circa $6bn and 22 managed aircraft valued at circa $800m leased to 46 airlines globally.

“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,” said Fahad Al-Saif, AviLease chairman.

The landmark transaction is expected to accelerate the company’s growth plans to become a top-10 global lessor by 2030.

AviLease Acquires Standard Chartered Aircraft Leasing Platform.https://t.co/j4VpheBryo#SPAGOV pic.twitter.com/6MklEqG9Zy

— SPAENG (@Spa_Eng) August 28, 2023

The Riyadh-based lessor said the transaction is expected to close in Q4 2023. The company secured $2.1bn in bridge financing commitments from BNP Paribas, Citibank, HSBC Bank Middle East and MUFG Bank as part of the deal.

“The acquisition will bring together two strategically complementary businesses, providing AviLease scale,