Prime Highlights:
Saudi Arabia’s Public Investment Fund (PIF) raised $4 billion through a bond offering, which was four times oversubscribed, receiving $16 billion in orders.
The bonds were issued in two tranches: $2.4 billion in five-year debt instruments and $1.6 billion in nine-and-a-half-year securities.
The funds raised will be used for general corporate purposes, contributing to PIF’s broader capital-raising strategy.
Key Background:
The Public Investment Fund (PIF) of Saudi Arabia has successfully completed its $4 billion bond issuance, which was met with strong demand from global investors. The offering attracted approximately $16 billion in orders, four times the initial size of the offering, underscoring robust international interest.
The bond issuance, which was structured under PIF’s Euro Medium-Term Note Program, was divided into two tranches: $2.4 billion in five-year debt instruments and an additional $1.6 billion in securities maturing in nine and a half years. The sovereign wealth fund confirmed that the proceeds from the bond sale will be used for general corporate purposes.
This development follows PIF’s recent successful closure of its inaugural Murabaha credit facility, securing $7 billion in funding. The issuance is part of PIF’s broader strategy to raise capital over the coming years. Ahmed Alrobayan, head of public markets at PIF, emphasized that the strong demand from international institutional investors reflects the fund’s diverse investor base, robust capital-raising strategy, and solid credit profile. These factors contribute to PIF’s uninterrupted access to global capital markets and reinforce its essential role in supporting Saudi Arabia’s economic transformation.
In addition, PIF’s capital-raising success is further supported by its upgraded credit rating. In November 2024, Moody’s raised PIF’s long-term issuer rating from A1 to Aa3, with a stable outlook, signaling the fund’s strong financial position and its deep connection with the Saudi government. Moody’s has characterized entities rated Aa3 as having high quality, low credit risk, and the ability to repay short-term debts with ease.
Earlier in 2024, PIF secured a $15 billion revolving credit facility for general corporate purposes from a global consortium of 23 financial institutions. This facility is extendable for up to two additional years, further strengthening PIF’s financial flexibility. PIF, currently managing assets worth $925 billion, is on track to reach $2 trillion in assets by 2030, as forecasted by Global SWF.
