Saudi PIF prices $1.25bn sukuk offering amid strong demand

The Saudi Public Investment Fund (PIF) announced the pricing of a $1.25 billion sukuk offering.

The proceeds of the dollar-denominated offering will be used for PIF’s general corporate purposes, the Saudi sovereign wealth fund revealed.

The seven-year sukuk, to be listed on the London Stock Exchange’s International Securities Market, attracted over $9 billion in orders — more than 6.5 times the amount offered.

Ahmed Alrobayan, head of Public Markets, Global Capital Finance, at PIF, said the strong investor demand for the new sukuk offering underscores PIF’s robust credit profile, along with its role as a key driver of Saudi Arabia’s economic transformation.

“The transaction represents a continuation of our established and diversified financing strategy, which draws strong support from international investors,” he said.

PIF’s long-term strategy for raising capital involves a broad mix of financing tools, such as sukuk and bond issuances.

Earlier this year, PIF completed its inaugural murabaha credit facility, and last August renewed a revolving credit facility.

PIF is rated Aa3 by Moody’s with a stable outlook, and A+ by Fitch, also with a stable outlook.