Saudi Arabia’s the Public Investment Fund (PIF), is marketing a USD benchmark-sized 7-year sukuk with initial price thoughts (IPTs) in the145 basis points over Treasuries area.
Structured as Sukuk Al-Wakala, it comes under the Trust Certificate Issuance Programme. The issuer is SUCI Second Investment Company, a wholly-owned subsidiary of PIF with the Fund, rated Aa3 (Stable) / A+ (Stable) (Moody’s/Fitch), acting as the obligor.
PIF has $940 billion in assets under management.
Standard Chartered Bank is the broker and dealer while HSBC Bank plc, J.P. Morgan and Standard Chartered Bank are the global coordinators. Abu Dhabi Commercial Bank, Al Rajhi Capital, Albilad Capital, BNP Paribas, Citi, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, and Mashreq are joint lead managers and joint bookrunners.
The proceeds from the sukuk will be used for general corporate purposes, supporting the PIF’s ongoing investment activities.
The issuance is expected to be rated Aa3 / A+ by Moody’s and Fitch
Since its first bond issuance in 2022, PIF has had seven issuances in the global markets of $22 billion, including vanilla and green eurobonds as well as sukuk.
Early this year PIF raised $4 billion in a dual-tranche bond offering and also raised $7 billion from its first murabaha credit facility.
The fund is spearheading Saudi Arabia’s Vision 2030 initiative, which aims to diversify its economy away from oil.
(Writing by Brinda Darasha; editing by Seban Scaria)
brinda.darasha@lseg.com
