Saudi Arabia’s PIF completes $4bn bond issuance

Saudi Arabia’s Public Investment Fund (PIF) has announced the successful completion of a $4bn Reg S bond issuance.

The proceeds will be used for general corporate purposes.

The international bond offering, which is part of PIF’s Euro Medium-Term Note Programme, was four times oversubscribed, with an order book totaling approximately $16bn.

The issuance consists of two tranches:

• $2.4bn (SAR9bn), maturing in five years
• $1.6bn (SAR6bn), maturing in nine and a half  years

PIF bond oversubscribed

The strong oversubscription highlights the effectiveness of PIF’s capital-raising strategy.

The issuance further reinforces PIF’s robust financial standing and its adherence to best practices in debt financing.

Ahmed Alrobayan, head of Public Markets, Global Capital Finance at PIF, commented: “Continued strong demand from international institutional investors is a testament to PIF’s diversified investor base, robust medium-term capital raising strategy and strong credit profile.

“These factors allow uninterrupted access to the global capital markets and support PIF’s efforts in driving Saudi Arabia’s economic transformation.”

PIF holds an Aa3 rating from Moody’s with a stable outlook, and an A+ rating from Fitch, also with a stable outlook.

The fund’s funding sources include government capital injections, asset transfers from the government, retained earnings from investments, and loans and debt instruments.