Bloomberg reported that the Saudi Public Investment Fund (PIF) has appointed banks for an Islamic dollar bond sale. The value of these instruments could reach up to $3 billion.
Sources reported that HSBC, Standard Chartered, Emirates NBD, and Al Rajhi Capital will arrange the offering.
This is the fund’s second offering of this type, following the sale of green bonds last February, which raised $5.5 billion.
Read more: Will Saudi’s PIF issue green bonds soon?
Bloomberg sources suggest that the instruments might be issued before year-end, but there could be a delay in the issuance date.
On Tuesday, the fund signed a binding subscription agreement with Middle East Co fr Mnfg&Prdcg Paper SJSC. This agreement increased its capital from SAR 666.67 million ($177.7 million) to SAR 866.70 million ($230.99 million).
According to a statement released on Tuesday on Saudi Tadawul, the fund will subscribe to the new shares. This will result in PIF owning approximately 23.08 percent of the company’s capital after the capital increase from the issuance of the new shares.
The Capital Market Authority (CMA) has approved the PIF’s payment of a subscription amount of SAR 31.5 per new share, totaling SAR 630 million.
The fund will subscribe to approximately 20 million new shares, which will be issued to the company through capital increases. This will result in the discontinuation of the current shareholders’ priority rights.
Approval from multiple entities is required for the capital increase. This includes CMA, Saudi Tadawul, and the company’s extraordinary general assembly, as well as internal approvals required by the Fund.
ASFAR
On July 27th, PIF announced the launch of the Saudi Tourism Investment Company (ASFAR). The company’s objective is to enhance the local tourism sector’s capabilities and invest in tourism projects across various cities in the Kingdom. ASFAR also aims to develop attractive destinations in the hospitality, leisure, retail, and food sectors. In addition, the company focuses on investing in the local tourism industry.
ASFAR plans to boost the private sector through joint investments and create opportunities for local contractors, suppliers, and SMEs. This will contribute to the growth of businesses and tourist destinations, while creating a competitive environment that improves the quality of services provided.
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