AviLease has announced the signing of a definitive agreement to acquire the aircraft leasing business of Standard Chartered, which includes the Dublin-based Pembroke Group.
AviLease, an aircraft lessor fully owned by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has announced the signing of a definitive agreement to acquire the aircraft leasing business of Standard Chartered, which includes the Dublin-based Pembroke Group. This strategic acquisition aligns with AviLease’s growth plans and Saudi Arabia’s Vision 2030 initiative, which aims to diversify the economy and create high-value employment opportunities.
Fahad Al-Saif, Chairman, AviLease said, “The Standard Chartered leasing business is an industry-leading platform combined with a team of high-calibre professionals with an outstanding reputation. 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.”
The $3.6 billion acquisition involves the purchase of a portfolio of 100 narrow-body aircraft and the servicing of an additional 22 aircraft. The combined platform will own and manage 167 advanced technology, fuel-efficient aircraft, comprising 145 owned and valued at approximately $6 billion, along with 22 managed aircraft valued at around $800 million leased to 46 airlines worldwide.
Edward O’Byrne, CEO, AviLease said, “This acquisition is a fantastic next step in AviLease’s young existence. We are purchasing a very high-quality portfolio of narrow body aircraft on lease to top-tier airlines globally. The transaction accelerates the scale-up and lessee diversification of our fleet, demonstrating our ability to execute on our investment strategy. Equally important is the ability for us to combine forces and leverage the high-quality capabilities of the Standard Chartered platform. We have the ambition to become a top-10 global aircraft lessor and this acquisition brings us one step closer.”
To facilitate the acquisition, AviLease has successfully secured $2.1 billion in competitive bridge financing commitments from prominent banks, including BNP Paribas, Citibank N.A., HSBC Bank Middle East, and MUFG Bank.
Simon Cooper, CEO of Corporate, Commercial & Institutional Banking and Europe & Americas, Standard Chartered said, “We wish AviLease every success with its strategy to develop further the business for continued growth, and delivering on its ambition, to be a significant global player in the aviation leasing sector. I want to thank our Standard Chartered Aviation Finance colleagues, whose strong commitment to building an outstanding franchise over more than 15 years has enabled the success of this transaction.”
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The transaction is anticipated to be finalized in the fourth quarter of 2023. Financial advisory services for the transaction were provided by Citigroup for AviLease and J.P. Morgan Securities PLC for Standard Chartered. Legal counsel was offered by Allen & Overy and Arthur Cox LLP for AviLease, and Clifford Chance LLP and McCann FitzGerald LLP for Standard Chartered. Tax advisory was provided by KPMG for AviLease and PwC for Standard Chartered.
