Wednesday, 29 January 2025

Read full issue

DEBT WATCH

PIF completes pricing of USD 4 bn bond issuance as part of its Euro Medium-Term Note Program

The proceeds are set to be “utilized for general corporate purposes”

The Public Investment Fund’s (PIF) USD 4 bn bond issuance was nearly 4x oversubscribed, with an order book of approximately USD 16 bn, the sovereign wealth fund said in a statement yesterday. The issuance comes as part of the PIF’s EUR Medium-Term Note Program, with the proceeds set to be “utilized for general corporate purposes,” the statement reads.

The details: The two-tranche issuance consisted of one USD 2.4 bn (SAR 9 bn) tranche with a five-year tenor, and a USD 1.6 bn (SAR 6 bn) tranche with a 9.5-year maturity, according to the statement. The PIF is rated Aa3 by credit rating agency Moody’s with a stable outlook and A+ by Fitch Ratings, also with a stable outlook.

The PIF has been active in the debt market this year: The fund also completed a USD 7 bn murabaha credit facility earlier this month, backed by a syndicate of 20 unnamed international and regional financial institutions, as part of its “medium-term capital raising strategy.”

What they said: “Continued strong demand from international institutional investors is 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’s Ahmed Alrobayan said.

ADVISORS- BNP Paribas SA, Citigroup, Goldman Sachs, HSBC Holdings, JPMorgan Chase, and Standard Chartered managed the issuance.