The Public Investment Fund (PIF) of Saudi Arabia has signaled its intention to issue a multi-tranche bond denominated in dollars, revealing preliminary pricing details for this financial maneuver.
For the upcoming five-year bonds, the preliminary price guidance is set at approximately 150 basis points above the benchmark U.S. Treasuries. The ten-year bonds are marked at around 175 basis points over U.S. Treasuries, and the thirty-year bonds have an initial guidance of 235 basis points above the same benchmark.
The bond offering is being coordinated by the combined expertise of Citi, Goldman Sachs International, and J.P. Morgan, according to the details disclosed in a banking document.
The PIF, under the stewardship of Saudi Crown Prince Mohammed bin Salman, is at the forefront of Saudi Arabia’s strategic initiative to diversify its economy beyond petroleum. The fund plays a crucial role in funding various projects aimed at economic diversification.
In a previous financial undertaking, the PIF successfully completed a $3.5 billion issuance of Islamic bonds in October. This issuance was met with robust demand and was considered a significant gauge of investor confidence in the Middle Eastern markets following regional tensions.
The early part of 2024 has witnessed a surge in debt offerings from emerging markets. Bond sales in just the first half of January have already surpassed the $30 billion mark, indicating a vigorous start to the year in the bond market.