RIYADH, Sept 8 (Nyongesa Sande) – Saudi Arabia’s Public Investment Fund (PIF) has secured more than $7 billion in orders for its planned 10-year U.S. dollar-denominated bond, according to fixed income service IFR, as the kingdom continues to leverage strong global appetite for its debt issuances.
Initial price guidance for the issuance was set at around 120 basis points over U.S. Treasuries, with final pricing expected later on Monday. The bond is projected to be benchmark-sized, typically signifying at least $500 million.
The fundraising comes just a week after Saudi Arabia raised $5.5 billion from Islamic bonds (sukuk), a sale that drew robust investor demand and enabled the government to tighten pricing. The string of debt sales underscores Riyadh’s strategy to diversify funding sources while advancing its Vision 2030 economic transformation agenda.
PIF, which manages nearly $1 trillion in assets, disclosed an $8 billion write-down in its 2024 annual report, tied to its ambitious gigaprojects — vast developments aimed at reshaping the kingdom’s economy and global profile.
The sovereign wealth fund has appointed Citi, HSBC, and JPMorgan as joint global coordinators for the debt sale. Bank of China, BNP Paribas, Goldman Sachs, ICBC, and Standard Chartered are acting as joint active bookrunners.
The bond offering highlights PIF’s dual role of financing mega projects and strengthening its balance sheet amid volatility in global markets. Analysts expect strong institutional participation, reflecting investor confidence in Saudi Arabia’s economic reforms and sovereign backing.