(Alliance News) - Standard Chartered PLC on Monday said it has struck a deal to sell its aviation finance leasing business to the Public Investment Fund, Saudi Arabia's sovereign wealth fund.
PIF-owned AviLease will buy the StanChart unit for USD700 million, StanChart explained. The lender had said in January that it was exploring its options for the business.
AviLease will also fund the repayment of roughly USD2.9 billion worth of net intra-group financing from StanChart, the FTSE 100 constituent said.
It added: "On completion of the transaction, Standard Chartered will record an estimated gain of approximately USD300 million and an increase in common equity tier 1 capital ratio by around 19 basis points. Standard Chartered expects to include the net proceeds from the transaction within the overall management of the capital and liquidity position of Standard Chartered and its subsidiaries."
By Eric Cunha, Alliance News news editor
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Standard Chartered (STAN)
