PIF-owned AviLease secures $1.5bn credit facility to boost global expansion

25/04/2025 02:45 AST

Saudi-backed AviLease has closed a $1.5 billion unsecured revolving credit facility to support its international expansion and investment in next-generation, fuel-efficient aircraft.

The conventional three-year facility was oversubscribed, attracting commitments from 20 global banks, including eight new lenders from Europe, Asia, and North America, the company said in a release.

Owned by Saudi Arabia's Public Investment Fund, AviLease is central to the Kingdom's push to diversify its economy and develop a globally competitive aviation industry under its Vision 2030 strategy.

Edward O'Byrne, CEO of AviLease, said: "We are pleased to close this facility, noting the strong international demand. Together with our existing revolver of $750 million, it brings our immediately-available committed facilities to $2.25 billion, spanning 25 local and global lenders."

He added: "This enhanced liquidity positions us to continue our expansion, investing in latest-technology, fuel-efficient aircraft while maintaining the conservative financial policy that underpins our strategy."

Headquartered in Riyadh, the firm manages a fleet of 200 aircraft - largely composed of new-technology models - leased to 48 airline customers worldwide.

Earlier this month, AviLease signed a memorandum of understanding with Turkish Airlines for the long-term lease of eight Airbus A320neo aircraft. Two aircraft have already been delivered, with the remainder scheduled for delivery throughout 2025.

In March, the lessor delivered three A320neo aircraft to SDH Wings, a joint venture between AviLease and China's sovereign wealth fund, in which the Kingdom holds a 10 percent stake.

The firm is also investing in local talent development. Earlier this year, AviLease partnered with Prince Sultan University and Riyad Bank to deliver a specialized aviation financing course to more than 150 professionals.

At the time, the company said the initiative aimed to equip Saudi talent to lead the Kingdom's aviation finance sector and support the human capability development goals outlined in Vision 2030.

AviLease also stated that it will continue to create local economic value and generate both direct and indirect employment opportunities for Saudi nationals across the aviation and financial services sectors.

In October, AviLease expanded its fleet with the acquisition of nine aircraft from global lessor Avolon, building on a previous transaction in which it purchased 13 aircraft from the same company the year before.

The deal was followed by AviLease's first transaction with BBAM, one of the world's leading aircraft lessors, through which it acquired a Boeing 787-9. The acquisition marked the introduction of the 787-9 to AviLease's operating lease portfolio and added a new airline customer based in the Americas, further diversifying the company's global client base.