Saudi Arabia’s Public Investment Fund (PIF) is poised to raise $3.5 billion through its inaugural sale of dollar-denominated Shariah-compliant sukuk, according to an official statement released on Thursday. The offering, listed on the London Stock Exchange’s International Securities Market, comprises two tranches with tenors of five and 10 years. Orders for the sukuk exceeded $25 billion, showcasing strong investor confidence in PIF. The first tranche, worth $2.25 billion, matures in 2028, while the second tranche of $1.25 billion is set to mature in 2033. PIF’s Global Capital Finance Division head, Fahad Al-Saif, stated that the sukuk issuance is a significant step in diversifying funding sources for PIF.
Proceeds from the sukuk sale will be used for PIF’s general corporate purposes, adding to the diverse funding sources, including retained earnings from investments, government capital injections, and government assets transferred to PIF. This issuance follows PIF’s previous efforts, such as two green bond issuances totaling $8.5 billion, a $17 billion corporate loan in 2022, and the establishment of an international trust certificate issuance program, all contributing to PIF’s medium-term capital-raising strategy and diversification initiatives.