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PIF raises $4 billion in oversubscribed international bond offering
The issuance includes two tranches: $2.4 billion for five years and $1.6 billion for 9.5 years.
Saudi Arabia’s Public Investment Fund (PIF) has successfully priced a $4 billion international bond offering, reflecting strong investor confidence in the fund and its strategic role in the Kingdom’s economic transformation.
The Reg S bond issuance, part of PIF’s Euro Medium-Term Note Program, was four times oversubscribed, attracting around $16 billion in orders.
The offering consists of two tranches: a $2.4 billion five-year tranche and a $1.6 billion 9.5-year tranche. PIF confirmed that the proceeds will be used for general corporate purposes.
According to PIF, the overwhelming demand for the bonds highlights the effectiveness of its capital-raising strategy and its pivotal role in advancing Saudi Arabia’s Vision 2030. It also highlights PIF’s strong financial position and commitment to adhering to best practices in debt financing.
“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,” said Ahmed Alrobayan, head of public markets, global capital finance, at PIF. “These factors allow uninterrupted access to the global capital markets and support PIF’s efforts in driving Saudi Arabia’s economic transformation.”
PIF, rated Aa3 by Moody’s and A+ by Fitch, is supported by government injections, asset transfers, investment earnings, and debt. This successful bond offering follows PIF’s recent $907 million deal with Elm for Thiqah Business Services, which aims to strengthen the ICT sector and further diversify Saudi Arabia’s economy.
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