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Saudi Arabian jet-leasing company AviLease, backed by the Public Investment Fund (PIF), is planning a debut dollar bond issuance, seeking to raise at least $500mn. The company is in talks with banks like JPMorgan and Citigroup for the dollar bond, which is part of a larger $2bn note program. This initiative is in line with Saudi Arabia’s Vision 2030 to expand its aviation sector and reduce its reliance on oil. AviLease, received investment-grade ratings in April, and is said to be expanding rapidly. Rated at Baa2/BBB (Moody’s/S&P), AviLease had acquired Standard Chartered’s aviation finance arm for $3.6bn in late-2023. Besides, in May, it ordered 30 Boeing 737-8 aircrafts, its first direct OEM order, to provide modern, fuel-efficient aircraft, with deliveries to be made through 2032. This move also reflects a broader trend of Saudi state-linked firms using international bond markets to finance large-scale projects.
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