Saudi PIF-Owned AviLease Acquires Standard Chartered Aircraft Leasing Business

Saudi Arabian Public Investment Fund’s (PIF)-backed enterprise successfully concluded a transaction on August 28, 2023, as announced by Standard Chartered a day later. The agreement, valued at $0.7 billion in cash, was reached after competitive negotiations.

Simon Cooper, CEO of Corporate, Commercial & Institutional Banking and Europe & Americas at Standard Chartered, commented, “By divesting our Aviation Finance leasing, we can focus on our core strengths and advance our Return on Tangible Equity journey.”

Standard Chartered managed a portfolio of over 120 aircraft leased to 30 global airlines. In 2022, the aviation leasing sector recorded a post-tax profit of $15.6 million and possessed net assets worth $300 million, with a gross asset value of $3.8 billion. The deal encompasses the complete shareholding of Pembroke Group Limited (Isle of Man), Pembroke Aircraft Leasing Holdings Limited (Ireland), and Pembroke Aircraft Leasing (Tianjin) Limited (China).

AviLease expressed its contentment with the transaction, hailing it as a “significant milestone” that positions the Saudi Arabian firm as a major player in the global aircraft leasing landscape. The move unites two complementary businesses under the AviLease brand, promising amplified scale, diversification, and access to Standard Chartered’s unique capabilities.

Together, the two companies will oversee 167 leased aircraft serving 46 airlines, AviLease stated. According to ch-aviation.com, AviLease’s current aircraft portfolio features 11 Airbus A320neo planes leased to Saudi low-cost carriers flyadeal and flynas. Additionally, the lessor holds 24 aircraft under undisclosed Special Purpose Vehicles (SPVs).

Meanwhile, Standard Chartered’s aircraft portfolio, inclusive of those managed and/or obtained through SPVs, amounts to 133 aircraft, as per ch-aviation.com data. The fleet spans from Airbus A319ceo, A320neo, and A321neo to Boeing 737s, including Akasa Air’s Boeing 737 MAX 8-200, alongside various wide-body aircraft such as Emirates’ Boeing 777-300ERs.