AviLease, the global aircraft lessor wholly owned by Saudi Arabia’s Public Investment Fund (PIF), has successfully closed its acquisition of Standard Chartered’s aircraft leasing business. The lessor stated that the $3.6bn landmark deal further cements its position in the global aircraft financing sector.
With this acquisition, the combined business now owns and manages 167 latest technology, fuel efficient aircraft leased to 46 airlines worldwide.
The syndication of the bridge financing of $2.1bn committed as part of the transaction was successfully completed with strong support from a group of ten banks: Al Ahli Bank of Kuwait, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Mizuho Bank, Natixis and Standard Chartered Bank. They joined the initial underwriting banks BNP Paribas, Citi, HSBC and MUFG Bank.
"Today marks an important milestone for AviLease,” said Edward O'Byrne, Chief Executive Officer. “With the completion of this acquisition, we are strengthening our position in the global aircraft leasing sector, in line with our ambition to become a top-10 global lessor by 2030. Through the expanded scale and synergies, we aim to accelerate our path towards an investment-grade rating. We are pleased to welcome our new colleagues to the AviLease team."
The transaction was originally announced in August 2023.
Standard Chartered also confirmed the closure of the sale for a cash consideration of $700 million and the repayment of approximately $2.9bn of net intra-group financing. Standard Chartered stated that the Group will benefit from an increase in Common Equity Tier 1 capital ratio of around 19 basis points, which will be included in its year end capital position.
MUFG commented that it was pleased to have successfully supported the provision of a $2.1 billion bridge facility for AviLease. Phil Roberts, Head of Global Corporate and Investment Banking, MUFG EMEA, said: “We are delighted to have partnered with AviLease in this milestone transaction that supports their ambitious growth plans. The unique combination of our aviation sector leadership, strong regional presence in the Middle East and proficiency in complex M&A financing positioned MUFG as a strong partner to support AviLease on this important transaction.”
Elyas Algaseer, Head of Global Corporate and Investment Banking, MENA, at MUFG added:“AviLease is one of the key players established by PIF to support the KSA’s Aviation sector. MUFG is honoured to have supported AviLease on this successful and landmark transaction which has placed Saudi Arabia amongst the top players in the global aviation market. Using the strength of our global aviation platform, we look forward to continuing our partnership with AviLease and PIF to aid the further development of the industry in KSA.”