Saudi aircraft lessor AviLease secures $1.5bn credit facility

Saudi Public Investment Fund unit Aircraft Leasing Company (AviLease) has finalised a $1.5 billion credit facility to fund aircraft purchases and business expansion, a local newspaper reported.

The three-year facility, which was oversubscribed, garnered interest from 25 international and domestic banks, Arab News reported, citing AviLease CEO Edward O’Byrne.

“Together with our existing revolver of $750 million, it brings our immediately‑available committed facilities to $2.25 billion,” O’Byrne said, according to the paper.

A subsidiary of the kingdom’s $930 billion sovereign wealth fund, AviLease’s portfolio comprises 200 owned and managed aircraft, including purchase commitments, that are on lease to 48 airlines.

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Earlier this month, Riyadh-based AviLease signed long-term leases with state-owned Turkish Airlines for Airbus A320neo aircraft. 

The Gulf’s aircraft leasing companies such as AviLease are profiting from prolonged delivery delays at aircraft makers Boeing and Airbus, with order backlogs at the manufacturers unlikely to clear before the end of the decade.

“These [aircraft leasing] guys are in a fantastic position because they have a fantastic fleet of aircraft,” Willie Walsh, director general of the International Air Transport Association (IATA), told AGBI earlier this month. “They are the winners.”