Saudi PIF-owned AviLease considers debut bond, sources say.

AviLease, owned by Saudi Arabia's Public Investment Fund, is considering its debut bond issuance, according to sources. Citigroup Inc. is reportedly involved in the deal, which could raise funds for the aircraft leasing firm. The bond issuance would be a significant milestone for AviLease, marking its entry into the debt capital markets. The deal's specifics, including the size and tenor of the bond, have not been disclosed.

AviLease, an aircraft leasing firm owned by Saudi Arabia's Public Investment Fund, is reportedly considering its debut bond issuance. According to sources, Citigroup Inc. is involved in the deal, which could raise funds for AviLease. The bond issuance would mark a significant milestone for AviLease, marking its entry into the debt capital markets. The specifics of the deal, including the size and tenor of the bond, have not been disclosed.

The bond issuance comes at a time when the aviation industry is recovering from the COVID-19 pandemic, and aircraft leasing firms like AviLease are looking to secure funding for growth and expansion. Citigroup's involvement in the deal underscores its role as a key player in the financial services sector, providing investment banking and debt underwriting services to various clients.

While the details of the AviLease bond issuance remain confidential, similar deals in the aviation sector have seen substantial interest from investors. For instance, Conapto Holding AB recently contemplated issuing subsequent bonds to finance a new project, indicating strong investor appetite for debt capital in the sector Conapto initiates a written procedure under its existing bonds to permit a contemplated SEK 1 billion subsequent bond issue to finance a new project^[1].

Citigroup's own financial health and market positioning suggest a stable outlook. The company reported a 3-year revenue growth of 6.7% and a net margin of 17.06%, reflecting efficient cost management and profitability. However, the company's valuation metrics, such as the Price-to-Earnings Ratio and Price-to-Sales Ratio, indicate potential overvaluation, and insider selling activity is a cause for concern Citigroup (C) To Redeem $2.75B Notes by 2025^[2].

As AviLease and Citigroup proceed with the bond issuance, investors and financial professionals will be closely watching for further developments. The success of this deal could set a precedent for future aircraft leasing firms seeking to enter the debt capital markets.