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AviLease Buys Standard Chartered’s Aircraft Leasing for $3.6 Billion

AviLease has confirmed its acquisition of Standard Chartered’s aircraft leasing platform. This move, a $3.6 billion transaction, marks a substantial step in AviLease’s quest to be among the top 10 global lessors by 2030.

AviLease has confirmed its acquisition of Standard Chartered's aircraft leasing platform for $3.6 billion.

Key Highlights:

  • The agreement will see AviLease and Standard Chartered’s aircraft leasing businesses join forces. They create a powerhouse entity with ownership and management of 167 state-of-the-art, fuel-efficient aircraft.
  • These aircraft, with a combined value of nearly $6.8 billion, will be leased out to 46 airlines across the globe.
  • Newly founded and based in Riyadh, AviLease aims to diversify its global portfolio further with this acquisition. The lessor will integrate a seasoned team of professionals from the aviation industry.
  • The transaction will be wrapped up by the close of 2023.

AviLease Backed by Public Investment Fund (PIF), Saudi Arabia

AviLease, backed by the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, will merge with Standard Chartered’s Dublin-based Pembroke Group. This strategic integration will leverage Standard Chartered’s team and operating capabilities, offering AviLease an unmatched scale and diversification on the global stage.

AviLease Chairman Fahad Al-Saif said of the deal: “The Standard Chartered leasing business is an industry-leading platform combined with a team of high-caliber 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.”

Echoing these sentiments, AviLease CEO, Edward O’Byrne, added, “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 our fleet’s scale-up and lessee diversification, demonstrating our ability to execute 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.”

On the other side of the deal, Simon Cooper, CEO of Corporate, Commercial & Institutional Banking and Europe & Americas at 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.”

AviLease had expert counsel on the financial details from Citigroup, Allen & Overy, Arthur Cox LLP, and KPMG for AviLease. Standard Chartered collaborated with J.P. Morgan Securities PLC, Clifford Chance LLP, McCann FitzGerald LLP, and PwC.

About AviLease

AviLease is a new aviation financing and leasing company that started in June 2022. Based in Riyadh and supported by PIF, AviLease invests in state-of-the-art aircraft. Their goal is to become a significant player in the global aircraft leasing industry.

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