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The Public Investment Fund wrapped up the pricing of its USD 5 bn senior unsecured bond offering, it said in a statement last week.
Strong investor appetite: The offering was more than 5x oversubscribed, with global institutional investors placing orders worth USD 27 bn, according to the PIF.
What they said: “Continued strong demand from international institutional investors is a testament to the ongoing success of PIF’s medium-term capital raising strategy. It is also reflective of PIF’s strong credit profile and financial strength, highlighting its role as one of the key drivers of Saudi Arabia’s economic transformation and as one of the largest and most impactful sovereign wealth funds globally,” said Fahad Al Saif, head of the global capital finance division at PIF.
There’s no word on how the PIF plans to use the funds, but we expect it will simply add the cash to its war chest as it looks to push ahead with an aggressive investment plan this year and next.
REMEMBER- The PIF closed in October a USD 3.5 bn global sukuk issuance, two green bond offerings totaling USD 8.5 bn between 2022 and 2023, and lined up a USD 17 bn corporate facility in 2022. The fund aims to invest as much as USD 40 bn every year in the local economy as part of a drive to diversify away from oil.
Structure: The offering, which comes under the fund’s EUR Medium Term Note (EMTN) programme, includes three tranches:
- USD 1.75 bn with a 5-year coupon, maturing in 2029.
- USD 1.75 bn with a 10-year coupon, maturing in 2034.
- USD 1.5 bn with a 30-year coupon, maturing in 2054.
ADVISORS- Citigroup, Goldman Sachs and JP Morgan Chase were joint global coordinators on the transaction.
