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Aircraft lessor Avilease, fully owned by the Saudi Arabian sovereign wealth fund, has raised a $2.5 billion five-year unsecured term loan.
The financing comprises a $1.73 billion conventional facility and a $770 million Shariah-compliant facility. It will be used to fully refinance a bridge loan raised in 2023 as part of its acquisition of Standard Chartered’s aircraft leasing platform in late 2023.
The aviation financing and leasing firm said the facility was 2.7 times oversubscribed with substantial interest from across local, regional and international markets.
Public Investment Fund set up Avilease in 2022 as part of Saudi Arabia’s Vision 2030 strategy which aims to broaden the kingdom's industrial sector to non-oil sector and reduce reliance on oil.
The conventional tranche of the facility was coordinated by Abu Dhabi Commercial Bank, along with book runners Al Ahli Bank of Kuwait, BNP Paribas, Citigroup, Emirates NBD, First Abu Dhabi Bank, Gulf International Bank, JP Morgan and Saudi Investment Bank.
Commercial Bank of Dubai, HSBC and Natixis were mandated lead arrangers while Agricultural Bank of China, China Construction Bank, Gulf Bank and Saudi Awwal Bank were lead arrangers.
The Shariah-compliant facility was coordinated by Mizuho alongside Alrajhi Bank, Alinma Bank, Banque Saudi Fransi, MUFG, and Riyad Bank as bookrunners. Saudi National Bank and Warba Bank were lead arrangers.
In March 2024, Avilease closed a $700 million unsecured revolving credit facility.
The lessor has a portfolio of 180 owned and managed aircraft representing a book value of $6.5 billion.
(Writing by Brinda Darasha; editing by Seban Scaria)
