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Standard Chartered (StanChart) said that it was selling its global aviation finance leasing business to Saudi Arabia’s AviLease aka Aircraft Leasing Co, for about $3.6bn. AviLease is owned by Saudi’s sovereign wealth fund PIF. StanChart’s aviation leasing arm owns and manages over 120 aircrafts and offers services like jet fuel hedging, debt financing and remarketing of unneeded planes. The sale by StanChart comes amid its move to streamline its operations. An initial consideration of $700mn will be paid and AviLease will also fund repayment of $2.9bn of “net intra-group financing” from the StanChart group. StanChart expects to make a gain of ~$300mn from the sale of the business with its CET 1 ratio expected to rise by around 19bp.
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