Saudi PIF appoints banks for its sterling-dominated bonds
Investor meetings began on June 3, though the amount to be raised has not been disclosed.
Dubai: The Public Investment Fund (PIF), Saudi Arabia’s largest sovereign wealth fund, has appointed several banks to manage its upcoming debt offering.
Barclays, BNP Paribas, HSBC, and J.P. Morgan have been designated as joint global coordinators for the sterling-denominated dual-tranche notes, according to the fixed income news service IFR.
These 5-year and 15-year senior unsecured notes are part of a Euro medium-term note programme.
Investor meetings will begin on June 3, though the amount to be raised has not been disclosed.
Last month, the Saudi government raised $5 billion (Dh18.3 billion) through a three-tranche Islamic bond (sukuk), with an order size reaching $20 billion (Dh 73.4 billion), indicating strong investor demand.
Sukuk are Sharia-compliant bonds designed as alternatives to conventional bonds.
Despite being valued at $925 billion (Dh 3.3 trillion), the PIF is tasked with funding $1.25 trillion (Dh 4.5 trillion) worth of projects.
This burden will be partially offset by the upcoming Aramco share sale. The oil giant aims to raise up to $13 billion (Dh47 billion) by selling a 0.64 per cent stake to help the kingdom address its budget deficits.