What:
A banking document revealed that the Public Investment Fund (PIF), which manages assets exceeding USD 700 billion, appointed Goldman Sachs, HSBC, and Standard Chartered as international coordinators for the offering. Additionally, consultations with interested investors are set to begin on Monday.
So What:
If the offering is completed, PIF will join the Saudi government’s wave of bond issuance in emerging markets last month. It aims to exploit increased demand for debt instruments ahead of expected interest rate cuts by central banks during the current year.
Some Context:
The Saudi fund raised USD 5 billion through the sale of conventional bonds in three tranches in January. It also raised USD 3.5 billion through sukuk sales in October.
The Public Investment Fund is a key part of the kingdom’s plans to reduce reliance on oil, as the country is the world’s largest oil exporter.
The fund spent about a quarter of the total $124 billion spent by sovereign wealth funds worldwide last year, according to a report released in January by the Global SWF Institute.
Now What:
PIF intends to increase the size of its capital deployment to USD 70 billion annually after 2025. This is compared to the current range of $40 to $50 billion, according to the fund’s governor, Yasir Al-Rumayyan.
