Hassana, supported by the Public Investment Fund (PIF), partners with AviLease to establish a joint venture in aircraft leasing.

In a significant move, Hassana Investment Co. and AviLease have partnered to establish a new aircraft leasing joint venture. This strategic partnership is expected to contribute to the growth and development of Saudi Arabia's aviation industry.

Hassana, the investment manager of the General Organization for Social Insurance, will hold the majority stake in the venture, managing more than SR1.2 trillion ($300 billion) in assets. AviLease, a company backed by Saudi Arabia's Public Investment Fund, brings to the table its expertise in aircraft leasing, managing an aircraft portfolio worth over $7 billion. AviLease will act as the platform's aircraft service provider.

According to Fahad Al-Saif, chairman of AviLease, this partnership represents the private sector's first entry into the fast-growing aviation leasing space and reflects deeper collaboration between PIF companies and private investors. He emphasized that such partnerships provide a robust financial platform, capable of attracting high-quality local and international investments.

Hani Al-Jehani, acting CEO and chief investment officer of Hassana, stated that the strategic partnership with AviLease underscores a commitment to investing in resilient assets that generate sustainable, long-term cash flows. He further stated that the collaboration with AviLease aims to strengthen Hassana's exposure to the aviation leasing sector and advance the Kingdom's broader aviation aspirations.

The fleet consisting of new-generation, fuel-efficient models aligns with Saudi Arabia's push to boost efficiency and sustainability in its expanding aviation infrastructure. As its first transaction, the JV will acquire a portfolio of 10 aircraft from AviLease, currently leased to Saudi carriers.

The partnership comes as AviLease expands, having secured a $1.5 billion financing facility in April and received investment-grade ratings. The move aims to broaden access to aviation financing for local and international investors.

The partnership supports the Kingdom's National Aviation Strategy and updated target of drawing 150 million visitors a year by 2030, up from the original Vision 2030 goal of 100 million. This growth in tourism is expected to drive the demand for aviation services, making Saudi Arabia's aviation market an attractive investment opportunity.

Al-Jehani, who is also the CEO of Olivine, further stated that the collaboration aims to strengthen Hassana's position in the aviation leasing sector and position the company for future growth opportunities. AviLease CEO Edward O'Byrne stated that the collaboration with Hassana enhances the company's position as a PIF-backed lessor.

This partnership is part of Hassana's strategy to diversify its portfolio and invest in sectors with strong growth potential. Earlier this year, Hassana signed a memorandum of understanding with Saudi Real Estate Refinance Co., another PIF subsidiary, to launch the region's first residential mortgage-backed securities, further reflecting its role in diversifying Saudi Arabia's financial markets and pioneering innovative investment initiatives.

Fahad Al-Saif referred to the partnership as a 'significant step' in AviLease's growth and development. He believes that this partnership will help AviLease to capitalize on the growing demand for aviation services in Saudi Arabia and beyond.