Saudi PIF Launches Dual-Tranche Bond Offering
Deal News | Jan 22, 2025 | Zawya
Saudi Arabia's Public Investment Fund (PIF) is actively marketing a US dollar denominated dual-tranche bond, comprising three-year and nine-year offerings. The bonds are initially priced at US Treasuries (UST) plus 125 basis points for the three-year bonds and UST plus 140 basis points for the nine-year bonds. The bond offering, benchmark-sized at an expected $500 million, will be opened for subscription soon. These senior unsecured notes will be issued under GACI First Investment Company's Euro Medium Term Note Programme and will carry guarantees from PIF. The bonds enjoy a Aa3 rating from Moody's and an A+ rating from Fitch. BNP Paribas, Citi, Goldman Sachs International, and Standard Chartered Bank are acting as joint global coordinators for this issuance. PIF, which manages $925 billion in assets, intends to use the proceeds for meeting general corporate expenditures. This bond sale aligns with Saudi Arabia’s Vision 2030 initiative aimed at reducing dependence on fossil fuels.
Sectors
- Investment and Asset Management
- Financial Services
Geography
- Saudi Arabia – The Public Investment Fund from Saudi Arabia is launching the bond offering, indicating primary operations within this geography.
- United States – The bond is being offered in US dollars with reference to US Treasuries, highlighting financial connections with the United States.
Industry
- Investment and Asset Management – The article discusses fundraising through bond issuance by a sovereign wealth fund, highlighting activities in investment and asset management.
- Financial Services – Financial institutions like BNP Paribas, Citi, Goldman Sachs, and Standard Chartered are involved in coordinating the bond issuance.
Financials
- $500 million – Expected benchmark size of the bond issuance.
- 125 basis points – Initial price thoughts for the three-year tranche over US Treasuries.
- 140 basis points – Initial price thoughts for the nine-year tranche over US Treasuries.
- $925 billion – Assets under management by the Public Investment Fund.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Public Investment Fund | Issuer | Company | Saudi Arabia's sovereign wealth fund issuing US dollar bonds. |
| Moody's | Rating Agency | Company | Provides Aa3 rating for the bond issuance. |
| Fitch | Rating Agency | Company | Provides A+ rating for the bond issuance. |
| BNP Paribas | Joint Global Coordinator | Company | Involved in coordinating the bond issuance. |
| Citi | Joint Global Coordinator | Company | Involved in coordinating the bond issuance. |
| Goldman Sachs International | Joint Global Coordinator | Company | Involved in coordinating the bond issuance. |
| Standard Chartered Bank | Joint Global Coordinator | Company | Involved in coordinating the bond issuance. |
| GACI First Investment Company | Issuer | Company | Issuing the bonds under its Euro Medium Term Note Programme. |