Standard Chartered to Sell Aviation Finance Business for $700 Mln
Standard Chartered agreed to sell its global aviation finance leasing business for an initial $700 million in cash to Aircraft Leasing Company, or AviLease. The Asia-focused lender on Tuesday said the consideration could be adjusted depending on the net asset value of the business at completion.
The disposal is taking place through the sale of shares in relevant subsidiaries and minority equity interests held by the bank. The transaction, which is expected to close toward the end of the year, will result in a gain of around $300 million and increase its common equity Tier 1 capital ratio by around 19 basis points, the London and Hong Kong-listed group said.
The net proceeds from the sale will go toward the overall management of Standard Chartered’s capital and liquidity position, it added. AviLease is owned by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund.
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