Riyadh – Mubasher: Saudi Arabia’s Public Investment Fund (PIF) has completed the pricing of a $4 billion Reg S bond offering.
Proceeds from the international bonds’ offering will be utilised for general corporate purposes.
The PIF noted that the offering was four times oversubscribed with strong demand from a range of global investors, which reflected the strong financial position of the Saudi sovereign wealth fund.
With an order book of approximately $16 billion, the issue comprised two tranches of $2.40 billion (SAR 9 billion) for five years in addition to $1.60 billion (SAR 6 billion) over 9.5 years.
The international bond offering is part of PIF’s Euro Medium-Term Note Program.
Head of Public Markets at PIF’s Global Capital Finance, Ahmed Alrobayan, said: “Continued strong demand from international institutional investors is testament to PIF’s diversified investor base, robust medium-term capital raising strategy and strong credit profile.”
Alrobayan added: “These factors allow uninterrupted access to the global capital markets and support PIF’s efforts in driving Saudi Arabia’s economic transformation.”
The oversubscription reflects the effectiveness of PIF’s capital raising strategy and affirms PIF’s key role in driving Saudi Arabia’s economic transformation.
PIF is rated ‘Aa3’ by Moody’s with a stable outlook and ‘A+’ by Fitch, also with a stable outlook.
It is worth noting that PIF has four main sources of funding; capital injections from government, government asset transfers, retained earnings from investments, and loans and debt instruments.
