Saudi Arabia’s Public Investment Fund (PIF) has successfully priced its inaugural sterling bond offering of £650 million ($829.80 million) under its existing Euro Medium-Term Note program. This strategic move is part of PIF’s ongoing efforts to diversify its funding sources. The offering, which was more than six times oversubscribed, consists of a £300 million tranche with a 5-year coupon and a £350 million tranche with a 15-year coupon. Loans and debt instruments are among PIF’s primary funding sources, along with retained earnings from investments, capital injections from the government, and government assets transferred to the wealth fund.
PIF holds a strong credit rating, with an A1 rating and a positive outlook from Moody’s, and an A+ rating with a stable outlook from Fitch. In January, PIF completed the pricing of a $5 billion bond offering, which was over five times oversubscribed, attracting $27 billion in orders. This offering included three tranches: $1.75 billion with a 5-year coupon maturing in 2029, another $1.75 billion with a 10-year coupon, and $1.5 billion with a 30-year period. Additionally, in April, PIF signed a memorandum of understanding with BlackRock Saudi Arabia to establish a Riyadh-based multi-asset investment platform, anchored by an initial investment mandate of up to $5 billion from PIF. As of 2024, PIF’s assets under management have reached $925 billion, with a target of $1 trillion by the end of 2025. According to Brand Finance, PIF is the world’s most valuable sovereign wealth fund, valued at $1.1 billion, due to its diverse investment strategy and significant role in advancing Saudi Arabia’s economy.