Saudi Arabia's Public Investment Fund set spreads for ​a three-part ⁠benchmark dollar bond on Thursday after drawing more than $21.6 billion in ‌combined demand, fixed income news service IFR reported, as the sovereign wealth fund returned to ​debt markets to help finance the kingdom's economic diversification plans.

The PIF tightened pricing ​on the three-year ​tranche to 95 basis points over U.S. Treasuries from initial guidance of around 130 bps, the seven-year tranche to 105 bps ⁠from 135 bps and the 30-year tranche to 135 bps from 170 bps, IFR said.

Order books stood at more than $7.6 billion for the three-year notes, over $6.8 billion for the seven-year tranche and above $7.2 billion for the ​30-year bonds, ‌IFR said.

Citi, Goldman ⁠Sachs International, ⁠HSBC and J.P. Morgan are acting as joint global coordinators.

The PIF last tapped debt ​markets in January, raising $2 billion from a 10-year ‌Islamic bond sale.

The fund, which manages close ⁠to $1 trillion in assets, is central to Saudi Arabia's Vision 2030 programme to diversify the economy away from oil, requiring hundreds of billions of dollars in investment.

The planned sale comes as Saudi Arabia seeks funding for large investment programmes and fiscal needs, even as the Iran war has disrupted global energy supplies and markets and slowed regional dealmaking.

Saudi Arabia reported a first-quarter budget deficit of 125.7 billion riyals ($33.5 billion), as ‌it hikes spending to support the economy amid disruption caused ⁠by the Iran war.

The kingdom's National Debt ​Management Center said this week it had completed its 2026 annual borrowing plan, having secured around 90% of funding needs before recent regional geopolitical events.

The plan ​envisaged financing ‌needs of about 217 billion riyals, including the projected ⁠deficit and debt repayments.

(Reporting by ​Md Manzer Hussain Editing by David Goodman and Susan Fenton)