Saudi PIF-owned AviLease weighs debut bond, sources say

By Hadeel Al Sayegh and Federico Maccioni

DUBAI (Reuters) -AviLease, a jet-leasing firm backed by Saudi Arabia's almost $1 trillion Public Investment Fund (PIF), has been holding talks with banks to prepare an inaugural bond sale, two people with knowledge of the plan told Reuters.

The company has discussed a dollar-denominated debut with JPMorgan (JPM) and Citigroup (C/PN), said the people, who declined to be identified because the information is private.

AviLease could raise at least $500 million from its debut bond, as part of a $2 billion programme, according to one of the sources. The initial bond could be placed on the market by the end of the year, the person said.

AviLease did not respond to multiple requests for comment, while JPMorgan (JPM) and Citi declined to comment.

AviLease secured investment-grade ratings from Moody's and Fitch in April, which chairman Fahad AlSaif said would help the firm tap global capital markets to place itself at the forefront of aircraft leasing in line with Saudi Arabia's Vision 2030.

The plan includes Saudi Arabia expanding aviation to support tourism and reduce reliance on oil and involves the launch of a new carrier, Riyadh Air.

In the first half of 2025, Saudi issuers accounted for 18.9% of the $250 billion in emerging-market dollar debt, Fitch said last month, followed by the government raising $5.5 billion via sukuk this month and PIF selling a heavily subscribed $2 billion 10-year bond.

Established in 2022 as part of PIF's push to build a domestic aviation leasing giant, AviLease agreed in 2023 to buy Standard Chartered's (SCBFF) aviation finance arm for $3.6 billion.

In May 2025, AviLease made its first direct Boeing (BA) order for 20 737-8 MAX jets with options for 10 more, adding to a portfolio of 200 aircraft leased to 48 airlines worldwide as of March.

PIF and other state-linked firms are increasingly turning to dollar and euro bond markets to fill funding gaps and sustain Saudi Arabia's multibillion-dollar megaprojects.

(Reporting by Hadeel Al Sayegh and Federico Maccioni in Dubai, editing by Philippa Fletcher)