PIF-backed AviLease, Hassana form aircraft leasing JV

17/09/2025 02:54 AST

Saudi Arabia's Public Investment Fund-backed AviLease has partnered with Hassana Investment Co. to establish a new aircraft leasing joint venture, underscoring growing public-private collaboration in advancing the Kingdom's aviation sector.

Hassana, the investment manager of the General Organization for Social Insurance, will hold the majority stake in the venture. AviLease, which manages an aircraft portfolio worth over $7 billion, will act as the platform's aircraft service provider, according to a press release.

The partnership comes as AviLease expands, having placed Boeing and Airbus orders in June, secured a $1.5 billion financing facility in April, and received investment-grade ratings.

The company is targeting a fleet of about 200 aircraft in Saudi Arabia's growing aviation market.

The move aims to broaden access to aviation financing for local and international investors while supporting the Kingdom's National Aviation Strategy. This supports the Kingdom's updated target of drawing 150 million visitors a year by 2030, up from the original Vision 2030 goal of 100 million.

AviLease CEO Edward O'Byrne said the collaboration with Hassana enhances the company's position as a PIF-backed lessor.

"The proposed joint venture is a foundational step in building a scalable platform that supports the growth of Saudi Arabia's aviation ecosystem. We look forward to further developing this partnership through future transactions and expanding our footprint in the global aircraft leasing market," he added.

As its first transaction, the JV will acquire a portfolio of 10 aircraft from AviLease, currently leased to Saudi carriers. The fleet consists of new-generation, fuel-efficient models, aligning with Saudi Arabia's push to boost efficiency and sustainability in its expanding aviation infrastructure.

Hani Al-Jehani, acting CEO and chief investment officer, Hassana, said: "This strategic partnership underscores our commitment to investing in resilient assets that generate sustainable, long-term cash flows supported by strong fundamentals."

He added: "Through our collaboration with AviLease, we aim to strengthen our exposure to the aviation leasing sector while advancing the Kingdom's broader aviation aspirations."

Al-Jehani said the initiative is fully aligned with the mandate to pursue attractive investment opportunities that advance the fund's portfolio objectives.

Fahad Al-Saif, chairman of AviLease, called the partnership "a significant step," adding that it represents the private sector's first entry into the fast-growing aviation leasing space and reflects deeper collaboration between PIF companies and private investors.

He further emphasized that such partnerships provide a robust financial platform, capable of attracting high-quality local and international investments while reinforcing Saudi Arabia's growing financial market presence regionally and globally.

Hassana manages more than SR1.2 trillion ($300 billion) in assets, deploying its scale and expertise across sectors and geographies to generate long-term value.

Earlier this year, the firm signed a memorandum of understanding with Saudi Real Estate Refinance Co., another PIF subsidiary, to launch the region's first residential mortgage-backed securities - further reflecting its role in diversifying Saudi Arabia's financial markets and pioneering innovative investment initiatives.

Arab News