Saudi PIF launches region’s first major bond sale

Saudi PIF launches region’s first major bond sale

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has mandated banks to arrange a bond sale, the first high-profile debt issue from the region, according to Reuters.

According to reporters, the $778 billion Public Investment Fund (PIF) plans to issue a dollar-denominated Islamic bond and mandated Citi, HSBC, JPMorgan, and Standard Chartered Bank to arrange a series of investor calls starting today (Monday).

That will be PIF’s second international debt issue after it secured $5.5 billion from green bonds last February.

The plans come as the tension in the Israeli-Palestine conflict has triggered an increase in volatility in the Middle East and North Africa (MENA) region and seen big investment banks such as JPMorgan and Morgan Stanley downgrade their view

A European-based investor said markets were closely anticipating how pricing and demand for the PIF Islamic bond would progress in days to come.

A dual tranche of 5- and 10-year tenor senior sukuk, or Islamic bonds, will follow, the document seen by Reuters showed. 

The sale is subject to market conditions.

The wealth fund has raised tens of billions, including a $17 billion loan in November, to fund a huge investment program to create new industries and jobs, including building a planned futuristic city in the desert known as NEOM.

If you see something out of place or would like to contribute to this story, check out our Ethics and Policy section.