Avilease Acquires Aircraft Leasing Business of Standard Chartered Bank
The Saudi aircraft leasing company Avilease, fully owned by the Public Investment Fund, announced the completion of its acquisition of the aircraft leasing business of Standard Chartered Bank for a value of $3.6 billion.
Avilease said in a statement that this deal strengthens its position in the global aircraft financing sector and contributes to accelerating the expansion of its fleet, which indicates its ability to implement its investment strategy.
The company explained that after this acquisition, it currently owns and operates a fleet of 167 fuel-efficient aircraft leased to 46 airlines around the world.
$2.1 Billion Loan for Deal
It added that it obtained a $2.1 billion loan from 10 banks for this deal, and these banks include (Al Ahli Bank of Kuwait, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Mizuho Bank, Natixis, and Standard Chartered Bank, in addition to the initial subscription banks, which are: (BNP Paribas, Citibank, HSBC Bank Middle East, and MUFG Bank).
Last August, Standard Chartered Bank said that it would sell its global aviation financing unit to aircraft leasing company Avilease for $700 million as part of its efforts to increase the efficiency of its operations.
This agreement comes at a time when the bank is focusing on areas of work that distinguish it from its competitors as part of its endeavor to achieve its goals for the year 2024.