Standard Chartered Plc agreed to sell its aviation finance business to a unit of Saudi Arabia’s sovereign wealth fund for $3.6 billion and inked a separate deal to offload a portfolio of loans as part of efforts to boost returns.
AviLease, a jet lessor owned by Saudi Arabia’s Public Investment Fund, will acquire a portfolio of 100 narrowbody aircraft and become servicer for another 22 jets, according to a statement. The combined platform will own and manage 167 planes.
Separately, Apollo Global Management Inc.-backed PK Airfinance agreed to buy the majority of a $920 million portfolio of secured aviation loans from Standard Chartered. Affiliates of Apollo will buy the rest of the aviation loans.
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