RIYADH: A $4 billion bond offering, split into two tranches, has been successfully priced by the Public Investment Fund of Saudi Arabia. Strong demand for the offering drew in investors from all around the world, and an order book of almost $16 billion was created, which is four times the size of the original offering, according to a statement. Under the Euro Medium-Term Note Program, PIF issued $2.4 billion in five-year debt instruments and an additional $1.6 billion in securities with a nine-and-a-half-year maturity, the statement said.
The revenues from the bond offering will be utilised for ordinary corporate objectives, according to confirmation from the sovereign wealth fund. This comes only weeks after PIF secured $7 billion in funds to close its first Murabaha credit facility. In the fund’s larger plan to raise money over the ensuing years, this is a critical turning point. “PIF’s diverse investor base, strong capital-raising strategy, and solid credit profile are highlighted by the strong demand from international institutional investors,” stated Ahmed Alrobayan, PIF’s head of public markets, Global Capital Finance.
“These factors are essential to PIF’s role in supporting Saudi Arabia’s economic transformation and guarantee continuous access to global capital markets,” he continued. PIF added that the oversubscription demonstrates the success of its capital-raising strategy and reaffirms its sound financial standing.
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