Updated February 26th, 2024 at 15:40 IST

Saudi Arabia's sovereign wealth fund prepares for second debt market offering

The PIF's foray into debt markets aligns with Saudi Arabia's broader economic agenda, spearheaded by Crown Prince Mohammed bin Salman.

Reported by: Business Desk
Saudi Arabia PIF debt issuance | Image:Crown Prince Mohammed bin Salman (Reuters)
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Saudi Arabia PIF debt issuance: Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), is gearing up for its second debt market issuance this year, according to a document reviewed by news agency Reuters. The PIF, which manages assets exceeding $700 billion, has enlisted Goldman Sachs, HSBC, and Standard Chartered as joint global coordinators for the offering.

The planned issuance will be in the form of an Islamic dollar bond, known as a sukuk, with a senior unsecured seven-year tenure. Investor meetings for the offering are scheduled to commence on Monday, signalling the fund's intent to tap into the current favorable market conditions.

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This move comes on the heels of the PIF's recent participation in the global debt market, having raised $5 billion through a triple-tranche conventional bond issuance in January. Additionally, the fund secured $3.5 billion from a sukuk deal in October, demonstrating its active engagement in diversifying its funding sources.

The PIF's foray into debt markets aligns with Saudi Arabia's broader economic agenda, spearheaded by Crown Prince Mohammed bin Salman. As the kingdom seeks to reduce its reliance on oil revenues, the PIF serves as a key instrument in driving economic diversification and fostering sustainable growth.

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PIF's substantial investment activities have positioned it as a prominent player in the global sovereign wealth fund landscape. Accounting for approximately a quarter of the $124 billion deployed by sovereign wealth funds worldwide in the previous year, the PIF has emerged as a significant contributor to global capital markets.

(With Reuters inputs.)

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Published February 26th, 2024 at 15:40 IST