Saudi Arabia’s PIF secures $2b fund for its mega projects
PIF issued $1.5 billion in three-year sukuk, $500 million in green bonds
Dubai: Saudi Arabia’s Public Investment Fund (PIF) has secured $2 billion (Dh7.3 billion) by issuing a mix of sukuk (Islamic bonds) and green bonds to finance its major projects.
PIF issued $1.5 billion (Dh5.5 billion) in three-year sukuk and $500 million (Dh1.8 billion) in green bonds maturing in October 2032, based on a bank document, according to news agency Reuters.
This marks the fourth time this year that PIF has entered the global bond market.
The sukuk were priced at 75 basis points above US Treasuries, while the green bonds were priced at 107 basis points above Treasuries, reflecting strong demand of $7.4 billion (Dh27 billion) and $3.4 billion (Dh12 billion), respectively.
Last month, the sovereign wealth fund renewed a $15 billion (Dh55 billion) credit facility with 23 global and regional banks, extending it for up to five years.
PIF signed six memoranda of understanding with Chinese financial institutions, valued at up to $50 billion (Dh183 billion), aimed at promoting two-way capital flows through both debt and equity.