Saudi Arabia’s Public Investment Fund (PIF) announced today the successful pricing of its inaugural sterling-denominated bonds offering with a total of GBP650 million ($831 million) under its existing Euro Medium-Term Note program. The offering comprises two tranches and was more than six times oversubscribed, reflecting strong demand from investors, a testament to PIF’s strong credit profile and financial stability.
PIF’s sterling-denominated bond offering included a GBP300 million tranche with a 5-year coupon and a GBP350 million tranche with a 15-year coupon.
This issuance falls under PIF’s strategy to continuously diversify its funding through multiple sources. In addition to loans and debt instruments, Saudi Arabia’s wealth fund uses other funding sources, including retained earnings from investments, capital injections from the government, and government assets transferred to PIF.
The PIF has raised $7 billion in bond sales so far this year and is looking to increase its borrowing through new sources to help fund the Kingdom’s economic diversification plan, Vision 2030. In addition, the Saudi Arabia government is constantly looking for more borrowing sources. Notably, it has raised $17 billion in international markets in 2024, surpassing all other emerging markets.
The PIF, which manages almost $1 trillion in assets, has an A1 rating with a positive outlook by Moody’s Investors Service and A+ with a stable outlook by Fitch Ratings. Notably, Brand Finance named the wealth fund the world’s most valuable sovereign wealth fund (SWF) brand this year. In addition, the PIF also boasts the sixth highest brand value to assets under management ratio, among all asset management firms globally.
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