Saudi Wealth Fund Issues $2B in Islamic Bonds

Sukuk Offering Tightens on High Demand

The Public Investment Fund (PIF) of Saudi Arabia has recently issued Islamic bonds, known as sukuk, with a total value of $2 billion. These bonds, with a 7-year term, are denominated in U.S. dollars.

The issuance was priced at a competitive 85 basis points above U.S. Treasuries. This pricing came in narrower than the initial guidance, which was set at 115 basis points over the same benchmark. The adjustment is attributed to the substantial demand for the offer, which attracted more than $16 billion in orders, as per the document from the bank arranging the issue.

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