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Saudi PIF launches new aircraft leasing company

RIYADH, June 30, 2022

The Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, has announced the launch of the  'AviLease', an aircraft leasing company which aims to be a leading institution across the aviation leasing value chain, maintaining an optimal portfolio of assets with its core focus on leasing, trading and asset management services.
 
AviLease will initially focus on scaling through purchase-and-lease-back transactions with airlines, portfolio acquisitions and direct orders from aircraft manufacturers and then it will look into expansions through corporate acquisitions. 
 
According to PIF, the company’s fleet will comprise new generation of narrow-body and wide-body aircraft from the top global aviation giants.
 
AviLease is managed by a top-tier team that will lead its growth, localize knowledge and expertise, and enable the development of the company’s desired infrastructure, with plans to become a national champion in the aircraft leasing market. 
 
Additionally, the company’s establishment will contribute to the reduction of value leakage for Saudi Arabia, while enhancing integration into the global aircraft financing market, it stated.
 
As a PIF-owned company, the wealth fund’s ample liquidity and strong balance sheet, combined with its depth of financing and investment-structuring expertise will help the company leverage the opportunity in the aircraft leasing market.
 
One of the largest and most impactful sovereign wealth funds in the world, PIF has a whopping $620 billion worth of assets under management (AUM) as of the end of Q1 2022 across a diversified portfolio spanning 13 strategic sectors in Saudi Arabia and globally. 
 
The launch of “AviLease” underlines PIF’s mandate to unlock the capabilities of promising sectors locally that can help drive the diversification of the economy and contribute to non-oil GDP growth, said a company spokesman. 
 
In addition, the company will be supporting a thriving aviation sector and driving financial sustainability within the aviation ecosystem in line with Vision 2030, it stated.
 
Since 2017, PIF has established 54 companies and created, directly and indirectly, more than half a million jobs as at the end of 2021. It plays a leading role in advancing Saudi Arabia’s economic transformation and diversification, as well as contributing to shaping the future of the world economy.-TradeArabia News Service



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