US-based Apollo Aviation Group has signed a purchase agreement with Lloyds Banking Group for the acquisition of eight aircraft, according to market sources.
The transaction includes eight of the 11-aircraft portfolio that were offered for sale by the bank.
The portfolio includes three Boeing 737-900 aircraft on lease to KLM, two Airbus A321 on lease to Air France, a 737-700 with Scandinavian Airlines, a 737-700 with GOL Linhas Aereas Inteligentes and one 737-700 with Shanghai Airlines, one source says.
Last month Lloyds narrowed the bidding process for the purchase of its 11-aircraft portfolio bids to two buyers from a shortlist of three financiers. A hedge fund and a private-equity firm, both US-based, were the final bidders.
BOC Aviation has been handling the sale on behalf of Lloyds.
The transaction, which expected to be completed over the next few weeks, will leave one A320 on lease to Monarch Airlines, one A319 with Brazilian carrier TAM, and one 737-700 with Turkish Airlines from the original 11-aircrraft portfolio.
The Miami-based lessor will buy the aircraft with the backing of its second aviation fund Sciens Aviation Special Opportunities Investment Fund II (SASOF II), which began trading in the first quarter of this year. SASOF II already includes 737-700, 737-800, A320, A330-200 and A330-300 types.
Apollo Aviation and Lloyds were unavailable for comment at the time of press.