PIF order book for new bonds issuance hits $27bn

PIF order book for new bonds issuance hits $27bn

Saudi Arabia’s Public Investment Fund (PIF) has launched a triple-tranche bond sale totalling $5 billion, according to a news report. The bond issuance has generated strong demand, with orders exceeding $27 billion, capital markets publication IFR reported. The final spreads for the bonds tightened from initial guidance to 115 basis points (bps) over US treasuries […]Saudi Arabia’s Public Investment Fund (PIF) has launched a triple-tranche bond sale totalling $5 billion, according to a news report.

The bond issuance has generated strong demand, with orders exceeding $27 billion, capital markets publication IFR reported.

The final spreads for the bonds tightened from initial guidance to 115 basis points (bps) over US treasuries for the 5-year bonds, 145 bps for the 10-year bonds, and 205 bps for the 30-year offering.

Citi, Goldman Sachs International and J.P. Morgan were joint global coordinators for the bond offering, the report said.

The sovereign wealth fund has nearly $718 billion in assets under management as of September 30, 2023.

In the latest spree of loan arrangements, Saudi Arabia sold $12 billion of bonds in a three-part issuance that was heavily oversubscribed. In December, the finance ministry concluded an $11 billion syndicated loan that was 2023’s largest worldwide. 

Finance minister Mohammed Al Jadaan recently approved a borrowing plan