Riyadh -- AviLease, wholly owned by PIF, has signed a strategic MoU with SDH Wings International Leasing Limited for the supply of up to 20 predominantly new technology aircraft, according to a press release from AviLease.

As part of this agreement, AviLease and SDH Wings have already identified the first five new technology narrowbody aircraft from AviLease’s owned portfolio that are now under LOI.

The signing, at the China-Saudi Investment Conference, which took place in Beijing from December 7 to 12, coincided with the visit of Saudi Investment Minister Khalid Al-Falih to China. The conference aimed to enhance the strategic partnership between the two countries in investment, trade and economy, and to support China’s Belt and Road Initiative to connect Asia with Africa and Europe.

According to the release, the MoU will facilitate the expansion of the portfolio of aircraft owned by SDH Wings, while allowing both majority shareholder Sichuan Development International Holdings (SDIH) and AviLease to develop and strengthen their new relationship and commitment to their joint venture platform.

AviLease acquired a 10% share of SDH Wings as part of the recently completed acquisition of the aircraft leasing platform of Standard Chartered.

The MoU also aims to enhance the strong relations and cooperation between China and Saudi Arabia, and seeks to find ways to collaborate closely for the benefit of both economies, the release said.

Under the terms of the MoU, AviLease will propose to SDH Wings different portfolios of primarily new technology narrowbody aircraft from the AviLease-owned portfolio and future acquisition pipelines.

AviLease CEO Edward O’Byrne said: “We are delighted to have this opportunity to work more closely with SDH Wings and our joint venture partner SDIH. We consider there to be vast untapped potential in the Asian aviation industry and hope to leverage our close relationship with SDH Wings to access new markets as part of our growth strategy.”