The Clap
The Saudi sovereign wealth fund has raised $2 billion from the sale of dollar-denominated sukuk, according to Reuters.
What
A banking document indicated that the sukuk were issued at a spread of 85 basis points over U.S. Treasury bonds.
This is lower than the initial price guidance of 115 basis points over the same bonds.
So What
The offering attracted $16 billion in orders, covering the subscription approximately 8 times over.
The yield reached 5.17% for the Sukuk with a maturity of up to 7 years, according to Bloomberg data.
This is the “second debt issuance” for the Saudi fund during the current year.
Now What
Bloomberg reported that the Public Investment Fund (PIF) plans to acquire a stake in Binladen Group, the largest construction group in the Kingdom.
The report revealed that the PIF, with assets of $700 billion, is considering buying part or all of the 36% stake owned by the Ministry of Finance.
This comes as the fund relies on local companies to build major projects and infrastructure.
These projects are crucial for hosting upcoming events, such as the Expo 2030 and the 2034 FIFA World Cup.
