PIF's AviLease inks MoU to supply 20 aircraft to SDH Wings

Logo of AviLease

AviLease, an aviation financing and leasing firm owned by Saudi Arabia’s Public Investment Fund (PIF), signed a strategic Memorandum of Understanding (MoU) with SDH Wings International Leasing Ltd. to supply up to 20 aircraft equipped with new technologies.

Under this agreement, AviLease and SDH Wings collaborated to identify and select the first five narrow-body aircraft from the portfolio owned by AviLease, as these aircraft are now part of the letter of intent, the company said in a statement obtained by Argaam today.

AviLease also stated that the agreement was signed during the China-Saudi Investment Conference held in Beijing on Dec. 7–12, on the sidelines of the visit of Investment Minister Khalid Al-Falih to China and the Hong Kong Special Administrative Region, as part of the development of the Saudi-Chinese strategic partnership path in the economic, investment, and trade fields.

The MoU falls under the umbrella of the Kingdom's Vision 2030, which promotes such strategic partnerships and promotes trade, investment, and economic activities in several fields, as well as China’s Belt and Road Initiative linking Asia with Africa and Europe.

The MoU will allow SDH Wings to expand the scope and size of its aircraft portfolio, as well as provide an opportunity for major shareholders Sichuan Development International Holdings (SDIH) and AviLease to work on developing new collaborations and partnerships, as well as strengthen their commitment to the joint venture platform that unites them, according to the statement.

The MoU also aims to promote strong relations and areas of cooperation between China and Saudi Arabia, as work is scheduled to begin to explore new ways and means to achieve close cooperation, benefiting the economies of the two countries.

As per the terms of the agreement, AviLease will propose to SDH Wings various groups of narrow-body aircraft, primarily equipped with new technologies, from AviLease's portfolio and new combinations of future acquisitions.

Last month, AviLease completed its $3.6 billion acquisition of Standard Chartered Bank's aircraft leasing business.