• The Public Investment Fund (PIF) achieves a significant milestone with the successful pricing of a substantial $5 billion Reg S international bond offering, part of its strategic Euro Medium-Term Note Program designed to diversify funding sources consistently.
• The bond offering is structured into three tranches, featuring a $1.75 billion segment with a 5-year coupon maturing in 2029, another $1.75 billion tranche with a 10-year coupon set to mature in 2034, and a final tranche of $1.5 billion with a 30-year coupon maturing in 2054.
• Fahad Al Saif, leader of PIF’s Global Capital Finance Division, highlights the sustained robust interest from international institutional investors as a clear endorsement of PIF’s effective medium-term capital-raising strategy.
The Public Investment Fund (PIF) has reached a significant milestone by pricing a substantial $5 billion Reg S international bond offering as part of its Euro Medium-Term Note Program, aimed at consistently diversifying funding sources, according to media reports.
The offering comprises three tranches: a $1.75 billion tranche with a 5-year coupon maturing in 2029, another $1.75 billion tranche with a 10-year coupon set to mature in 2034, and a final tranche of $1.5 billion featuring a 30-year coupon maturing in 2054.
Fahad Al Saif, leader of the Global Capital Finance Division at PIF, noted, “The sustained robust interest from international institutional investors is a clear indication of the effectiveness of PIF’s medium-term capital raising strategy.
Moreover, it underscores the strong credit profile and financial robustness of PIF, highlighting its pivotal role in driving Saudi Arabia’s economic transformation and its status as one of the world’s largest and most influential sovereign wealth funds.
In terms of funding, loans and debt instruments play crucial roles among the four primary sources for PIF.
The fund boasts a strong credit rating, with an A1 rating from Moody’s and a positive outlook, as well as an A+ rating from Fitch accompanied by a stable outlook.
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