Skip to content Skip to Search
Skip navigation

Saudi jet lessor AviLease secures $1.1bn to expand fleet

Riyadh-based Aircraft Leasing Company (AviLease) will use the unsecured five-year facility for general corporate purposes, including growing its fleet

Saudi Arabia’s Public Investment Fund arm for financing of aircraft has secured $1.1 billion in its inaugural funding round.

Riyadh-based Aircraft Leasing Company (AviLease) will use the unsecured five-year facility for general corporate purposes, including growing its fleet.

“We have successfully closed our debut $1.1 billion unsecured term financing facility, supported by a syndicate of banking partners locally, regionally and across the world,” AviLease CEO Edward O’Bryne said in a statement.

The financing is split into two parts: a conventional funding tranche of $850 million and a Shariah-compliant part of $250 million.   

The order book garnered substantial interest globally and was oversubscribed 3.3 times, the company said.

“The quality and breadth of demand for the debut funding far exceeded our expectations,” O’Bryne added.  

AviLease, launched in June last year, plans to increase its fleet to 300 aircraft by 2030 and has already acquired or committed to acquiring 45 aircraft by year-end at a book value of $2.4 billion.  

Citibank, Riyad Bank, First Abu Dhabi Bank, Gulf International Bank and Saudi Awwal Bank were lead arrangers for the transaction.   

Last week, AviLease purchased 13 aircraft, including seven Airbus A320neos, two A330neos and a Boeing 737 Max 8, from Ireland-based leasing firm Avolon to bolster its growth plans.

The jet lessor is competing to buy Standard Chartered Plc’s aviation finance business, Bloomberg reported earlier, adding the jet lessor is among several firms shortlisted for the second bidding round for the unit.

In July 2022, the PIF subsidiary signed its first leasing agreement with Saudi airline Flynas for purchasing 12 new A320neo aircraft and leasing them to the local low-cost airline.

Latest articles

Haitham Al Ghais, secretary general of Opec. The organisation has extended its voluntary output cuts, led by Russia and Saudi Arabia

Opec extends voluntary cuts to support oil market stability

Opec+ producers led by Saudi Arabia and Russia have stretched their additional voluntary crude supply cuts for another three months, as the oil bloc strives to support the stability and balance of sluggish markets. Oil prices traded flat Monday morning after a slight spike following the Opec announcement. Brent crude traded around $83.50 per barrel. […]

Sellers at the fish market in Jizan, Saudi Arabia. The kingdom brought in regulations in 2021 to curb overfishing

Saudi Arabia and UAE back fishing subsidies ban

The UAE and Saudi Arabia were the only GCC countries to back a failed bid by the World Trade Organization (WTO) to curb subsidies that contribute to overfishing and wider fishing sector overcapacity. It had been hoped that the Agreement on Fisheries Subsidies (AFS), which, according to WTO director-general Ngozi Okonjo-Iweala, has “been on the […]

Tourists in front of the Jabal Al-Mawaqi rock art in Saudi Arabia

PIF and Seera fail to reach agreement on investment

Saudi travel major Seera Group Holding has terminated plans for the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund, to invest in its subsidiary, Almosafer Travel and Tourism Company. The termination comes after the two companies failed to reach an agreement, Seera said in a statement to the Saudi bourse. The statement clarified that […]

The market value of net assets crossed AED20.8 billion, said Sheikh Ahmed bin Saeed Al Maktoum, chairman of DIEZ

Dubai Airport free zone operator’s profit rises 65%

State-owned Dubai Integrated Economic Zones Authority (DIEZ) said operating profit rose 64.6 percent year on year in 2023, driven by an 8 percent annual rise in revenues. The market value of net assets surpassed AED20.8 billion ($5.7 billion), Sheikh Ahmed bin Saeed Al Maktoum, chairman of DIEZ, said on the social messaging platform X. “These […]