The Public Investment Fund (PIF) has raised £650 million (approximately 3 billion riyals) from its first bond issuance in the UK’s currency.
This issuance is part of its European Medium-Term Note program (EMTN).
Details
The Kingdom’s sovereign wealth fund received substantial demand, exceeding six times the total offered amount.
This includes £300 million worth of bonds with a 5-year maturity.
Additionally, there were £350 million worth of bonds with a 15-year maturity.
So What
This marks the “third issuance of international debt instruments” for the fund, after raising $2 billion from a sukuk offering in February.
It also sold $5 billion worth of bonds in January.
This aligns with the Saudi Sovereign Wealth Fund’s strategy to diversify its funding sources.
Some Context
Loans and debt instruments represent one of the four main sources of financing for PIF, which significantly contributes to diversifying the largest Arab economy.
The other sources include:
– Retained earnings from investments
– Capital injections from the government
– Government’s assets transferred to the fund
The Public Investment Fund is rated (A1) by Moody’s with a positive outlook.
It is also rated (A+) by Fitch Ratings with a stable outlook.
