Riyadh, December 18, 2023, AviLease, a wholly-owned subsidiary of the Public Investment Fund (PIF), has entered into a strategic Memorandum of Understanding (MoU) with SDH Wings International Leasing Limited for the supply of up to 20 predominantly new technology aircraft. This announcement was made through a press release from AviLease.
As part of the agreement, AviLease and SDH Wings have already identified the first five new technology narrowbody aircraft from AviLease's owned portfolio, which are now under a Letter of Intent (LOI). The signing of the MoU took place at the China-Saudi Investment Conference held in Beijing from December 7 to 12. The event coincided with the visit of Saudi Investment Minister Khalid Al-Falih to China, aiming to strengthen the strategic partnership between the two countries in investment, trade, and the economy, as well as support China's Belt and Road Initiative.
The MoU is expected to facilitate the expansion of SDH Wings' aircraft portfolio, while also fostering the development and strengthening of the relationship and commitment to their joint venture platform between majority shareholder Sichuan Development International Holdings (SDIH), AviLease, and SDH Wings.
AviLease had previously acquired a 10% share of SDH Wings as part of the acquisition of the aircraft leasing platform of Standard Chartered. The MoU aims to enhance cooperation between China and Saudi Arabia, seeking ways to collaborate closely for the mutual benefit of both economies.
Under the terms of the MoU, AviLease will propose different portfolios of primarily new technology narrowbody aircraft from its owned portfolio and future acquisition pipelines to SDH Wings. The CEO of AviLease, Edward O'Byrne, expressed enthusiasm about the opportunity to work more closely with SDH Wings and leverage the untapped potential in the Asian aviation industry as part of their growth strategy.
