PHOTO
Saudi Arabia’s Public Investment Fund (PIF), rated Aa3 (Stable) by Moody’s and A+ (Stable) by Fitch, raised €1.65 billion from its green dual-tranche benchmark bond, with investor demand resulting in the total orderbook peaking at €6.9 billion.
The Reg S senior unsecured three-year bond raised €800 million, with the price considerably tightened to a Mid-Swap rate of +58bps from initial price thoughts (IPTs) between +90-95bps.
The annual coupon rate on the three-year was set at 2.75%, with a yield of 2.807%.
The seven-year bond, which raised €850 million, also saw a tightening of price to MS +90bps from IPTs at +125bps. The annual coupon rate was set at 3.375%, with a yield of 3.422%.
The final orderbook on the three-year bond levelled at €3.1 billion, excluding JLM interest, while books on the seven-year tenor hit €3.8 billion, excluding JLM interest.
The expected issuance rating is Aa3 / A+ (Moody’s/Fitch), with a settlement date of October 14.
Crédit Agricole CIB, JP Morgan and Societe Generale were mandated as Joint Global Coordinators, with Barclays, BBVA, BNP Paribas, HSBC, IMI Intesa-Sanpaolo and ING mandated as Joint Active Bookrunners.
Barclays was also acting as Green Structuring Advisor.
The bonds were to be issued under GACI First Investment Company’s Euro Medium Term Note Programme and guaranteed by the almost $1 trillion wealth fund.
The notes are 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)
