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Saudi Arabia’s Public Investment Fund (PIF) priced its $2 billion 10-year benchmark sukuk at 85 basis points over US Treasuries, with investor demand driving a tight spread from initial price thoughts in the T+120bps area.
The wakala structure carries a 5.133% coupon, paid semi-annually, with a similar yield and reoffer price set at par.
The orderbook, excluding JLM interest, peaked at $13.1 billion before settling above $10.9 billion.
The Saudi sovereign wealth fund’s senior unsecured issuance has an expected rating of Aa3 / A+ (Moody’s/Fitch), in line with PIF’s own rating.
PIF has been listed as the sukuk obliger, with SUCI Second Investment Company is the trustee.
Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China, Dubai Islamic Bank, ENBD, First Abu Dhabi Bank, GIB Capital, HSBC, ICBC, Mashreq Bank, Sharjah Islamic Bank have been mandated as joint lead managers and joint bookrunners. Citi, JP Morgan and Standard Chartered Bank are global coordinators on the issuance.
The sukuk will list on the London Stock Exchange’s International Securities Market.
The sukuk issuance is PIF’s first tap at debt markets in 2026, following a succession of issuances in recent months that saw the fund raise €1.65 billion from a dual-tranche benchmark bond in October, which was preceded by a $2 billion raise in 10-year bonds in September.
(Writing by Bindu Rai, editing by Seban Scaria)
