Skip to content Skip to Search
Skip navigation

Saudi jet lessor AviLease secures $1.1bn to expand fleet

Avilease
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

More than 24 million people visited the World Expo event at Expo City Dubai between October 2021 and March 2022

Construction begins at Expo City Dubai site

Construction has begun on the first residential properties at Expo City Dubai, part of a mixed-use master plan to repurpose the legacy site after the world fair came to a close two years ago. Master developer Expo City Dubai announced last week that it has awarded four key contracts for its Mangrove Residences. UAE-based USF […]

Saudi housing costs rose nearly 9% year on year in May

Saudi housing costs rise but inflation remains steady

Housing costs in Saudi Arabia rose nearly 9 percent year on year in May, but it was not enough to push overall inflation in the kingdom over 2 percent. The latest data from the General Authority for Statistics showed the annual inflation rate in Saudi Arabia was 1.6 percent in May, having remained at this […]

OTB Group has a presence in Dubai with its Maison Margiela store in the Dubai Mall

Chalhoub Group in venture with Italian luxury brand

Luxury distributor Chalhoub Group has entered into a joint venture with Italian fashion conglomerate OTB Group to expand the brand’s footprint in the Gulf. OTB (which stands for Only The Brave) owns the Diesel, Jil Sander, Maison Margiela, Marni and Viktor&Rolf brands, the Staff International and Brave Kid companies, and holds a stake in the […]

Arid conditions brought about by the drought in Morocco are affecting the cost of sheep

Drought pushes up sheep price for Eid in Morocco

The price for a sheep in Morocco for the annual sacrifice at Eid al-Adha has increased on average at 10 times the 2.2 percent rate of inflation. A medium-sized female sheep costs MAD4000 ($400) as opposed to MAD3000 last year. This puts it out of range for many families in the country where a high […]