Saudi Gazette report

RIYADH — The Public Investment Fund (PIF) has achieved a significant milestone by successfully pricing a substantial $5 billion Reg S international bond offering. This initiative is part of its Euro Medium-Term Note Program, aimed at diversifying its funding sources consistently.

The offering is divided into three tranches, a $1.75 billion tranche with a 5-year coupon, maturing in 2029, and another $1.75 billion tranche, this time with a 10-year coupon, set to mature in 2034. A final tranche of $1.5 billion, featuring a 30-year coupon, maturing in 2054.

Fahad Al Saif, who leads the Global Capital Finance Division at PIF, remarked, “The sustained robust interest from international institutional investors is a clear indication of the effectiveness of PIF’s medium-term capital raising strategy. Moreover, it underscores the strong credit profile and financial robustness of PIF, underscoring its pivotal role in driving Saudi Arabia’s economic transformation and its status as one of the world’s largest and most influential sovereign wealth funds.”

Among the four primary sources of funding for PIF, loans and debt instruments are crucial components. The fund boasts a strong credit rating, with an A1 rating from Moody’s and a positive outlook, and an A+ rating from Fitch accompanied by a stable outlook.