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Saudi Arabia’s Public Investment Fund (PIF), rated Aa3 (Stable) by Moody’s and A+ (Stable) by Fitch, has shared the initial price thoughts (IPTs) for its inaugural EUR green dual-tranche benchmark bond.
IPTs for the Reg S senior unsecured three-year bond is at a Mid-Swap rate between +90-95 basis points, with an October 14, 2028 maturity date. The seven-year bond has an IPT at MS +125bps, with a 2032 maturity.
The expected issuance rating is Aa3 / A+ (Moody’s/Fitch), with a fixed coupon rate payable annually in arrear.
The settlement date is October 14.
Crédit Agricole CIB, JP Morgan and Societe Generale have been mandated as Joint Global Coordinators.
Barclays, BBVA, BNP Paribas, HSBC, IMI Intesa-Sanpaolo and ING have been mandated as Joint Active Bookrunners.
Barclays is also acting as Green Structuring Advisor.
The bonds will be issued under GACI First Investment Company’s Euro Medium Term Note Programme and guaranteed by the almost $1 trillion wealth fund.
The notes will be listed on the London Stock Exchange’s International Securities Market, with proceeds used to finance, refinance or invest in eligible green projects, as described in PIF’s Green Finance Framework dated August 2024.
The Saudi sovereign wealth fund raised $2 billion in 10-year bonds on 8 September, priced at 95bps over US Treasuries, reflecting strong investor demand with orders exceeding $7.5 billion.
(Writing by Bindu Rai, editing Seban Scaria)
