*

AviLease plans $500 million bond as part of $2 billion

programme, source says

*

PIF and state-linked firms increasingly rely on

international

debt markets for funding

By Hadeel Al Sayegh and Federico Maccioni

DUBAI, Sept 25 (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.