Saudi Arabia’s Public Investment Fund (PIF) recently announced the pricing of a $1.25 billion sukuk offering. The proceeds of the dollar-denominated offering will be used for general corporate purposes, the fund said.
The seven-year sukuk was more than 6.5 times oversubscribed, with orders exceeding $9 billion. The sukuk will be listed on the London Stock Exchange’s International Securities Market as part of PIF’s international sukuk issuance program.
“The strong investor demand for this new sukuk offering underscores PIF’s robust credit profile, along with its role as a key driver of Saudi Arabia’s economic transformation. The transaction represents a continuation of our established and diversified financing strategy, which draws strong support from international investors,” stated Ahmed Alrobayan, head of public markets, global capital finance, at PIF.
Key sukuk and bond issuances
PIF’s long-term capital-raising strategy includes a diverse range of instruments, including sukuk and bond programs. Earlier this year, PIF announced that it had successfully completed the pricing of a $4 billion Reg S bond issuance. The international bond offering was part of the fund’s Euro Medium-Term Note Program and was four times oversubscribed, with an order book of approximately $16 billion.
The fund also announced its first murabaha credit facility for the sum of $7 billion, as part of its medium-term capital raising strategy. The financing structure was supported by a diverse syndicate of 20 international and regional financial institutions.
PIF is rated Aa3 by Moody’s with a stable outlook, and A+ by Fitch, also with a stable outlook.
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Driving Saudi Arabia’s transformation
PIF is the investment engine driving economic transformation for Saudi Arabia and the world. With an ambitious program to deliver Vision 2030, the fund invests in projects, companies and partners to diversify the Saudi economy, stimulate growth in every major sector, and create new opportunities for investment and employment.
With $925 billion in assets under management, PIF has established 103 companies since 2017 and is driving the transition to a more sustainable economy through strategic investments and partnerships across the Saudi public and private sector. The fund is also laying the foundations for local and international partners to invest in the economic and societal transformation of Saudi Arabia.
