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Saudi Arabia’s Public Investment Fund (PIF) raised $7 billion in debt with a three-tranche dollar benchmark bond offering across three-, seven- and 30-year tenors, with the combined orderbook peaking at $23.8 billion, reflecting strong investor appetite.
The wealth fund raised $2.75 billion on the three-year issuance, with the spread tightened to +95bps over US Treasuries from IPTs in the +130bps area. The tenor carried a 4.875% fixed rate coupon, paid semi-annually, with 4.892% yield, and a re-offer price of 99.953.
The seven-year tranche raised $1.75 billion at +105bps, with a 5.25% coupon. The issuance carried a 5.269% yield, and a re-offer price of 99.89. IPTs were in the +135bps area.
The 30-year offering raised $2.5 billion at +135bps, with a coupon of 6.25%. The yield was set at 6.333% and a re-offer price of 98.891. IPTs for the tenor were in the +170bps area.
The final orderbooks saw the three-year tranche cross $8.7 billion, with $7.3 billion on the seven-year and $7.8 billion on the 30-year issuances, all excluding JLM interest.
Citi was the billing and delivery bank on the two shorter tenors, while JP Morgan was listed on the 30-year issuance.
The offering has a rating of Aa3 / A+ by Moody’s/Fitch, in line with PIF’s own rating. GACI First Investment Company has been named as the issuer.
The multi-tranche Regulation S senior unsecured offering will come under PIF’s Guaranteed Euro Medium Term Note Programme, with a listing on London Stock Exchange’s International Securities Market.
Saudi’s $926 million wealth fund in January raised $2 billion via a 10-year Islamic bond sale that was priced at +85bps and carrying a 5.133% coupon.
The latest debt raise follows a shift in PIF’s strategy, which now focuses on deploying capital into high-impact areas of the economy. According to the National Debt Management Center, the kingdom’s projected funding requirement for 2026 is approximately 217 billion Saudi riyals ($57.8 billion).
(Writing by Bindu Rai, editing by Seban Scaria)
