AviLease, the rapidly expanding global aircraft lessor fully owned by PIF, has successfully raised US$1.1bn in its first financing, with an internationally funded, and highly oversubscribed offer. The unsecured term facility has a duration of five years and will be used for general corporate purposes, including the acquisition of more aircraft to add to the company’s leasing portfolio.
The financing is structured in two parts, a conventional funding tranche of US$850 million and a Shariah-compliant tranche, shortly to be signed, of US$250 million. AviLease reports that its request for financing generated huge interest across the local, regional and international markets, and was 3.3 times oversubscribed.
AviLease chief executive Edward O'Byrne, said: “We are very pleased to announce the successful closing of our debut US$1.1 billion unsecured term financing facility, supported by a syndicate of banking partners locally, regionally and across the world. We thank the lenders for their support and long-term confidence in AviLease. The quality and breadth of demand for the debut funding far exceeded our expectations, and we are thankful to our banking partners and advisors for their support in achieving this outcome.
O'Byrne added: “It is crucial for us to work with a wide variety of international financial partners with strong balance sheets, who can provide incremental funding to support our growth objectives."
Citibank, Riyad Bank, First Abu Dhabi Bank, Gulf International Bank and Saudi Awwal Bank acted as the mandated lead arrangers (MLAs) on the transaction. Banque Saudi Fransi, Saudi Investment Bank, Abu Dhabi Commercial Bank and HSBC Middle East acted as MLAs on the conventional tranche. Dubai Islamic Bank, Alrajhi Bank, Bank AlJazira and Saudi National Bank will be acting as MLAs on the Shariah-compliant tranche.
Citibank acted as the financial adviser for AviLease while Allen & Overy acted as its counsel, while the lenders were advised by Clifford Chance.
AviLease states that it plans to expand its fleet to about 300 aircraft by 2030, as it aims to "become one of the world's top aircraft leasing companies" and has acquired or committed to the acquisition of 45 aircraft by end of 2023, with a US$2.4bn book value.