Skip to content Skip to Search
Skip navigation

PIF order book for new bonds issuance hits $27bn

Saudi Tunisia Reuters/Ahmed Yosri
Finance minister Mohammed Al Jadaan recently approved a borrowing plan that estimated the financing needs at SAR 86 billion for 2024

Saudi Arabia’s Public Investment Fund (PIF) has launched a triple-tranche bond sale totalling $5 billion, according to a news report.

The bond issuance has generated strong demand, with orders exceeding $27 billion, the capital markets publication IFR reported.

The final spreads for the bonds tightened from initial guidance to 115 basis points (bps) over US treasuries for the 5-year bonds, 145 bps for the 10-year bonds, and 205 bps for the 30-year offering.

Citi, Goldman Sachs International and J.P. Morgan were joint global coordinators for the bond offering, the report said.

The sovereign wealth fund has nearly $718 billion in assets under management as of September 30, 2023.

In the latest spree of loan arrangements, Saudi Arabia sold $12 billion of bonds in a three-part issuance that was heavily oversubscribed. In December, the finance ministry concluded an $11 billion syndicated loan that was 2023’s largest worldwide. 

Finance minister Mohammed Al Jadaan recently approved a borrowing plan that estimated the financing needs at SAR86 billion ($22.93 billion) for 2024.

The plan aims to address the budget deficit, which is forecasted to be SAR79 billion this year due to lower crude output and reduced revenue amid falling prices.

The PIF had $85 billion in loans and borrowings at the end of 2022, a 30 percent increase from the previous year. 

Saudi government debt has risen steadily since 2014, reaching an all-time high of $264 billion by the end of 2022, equivalent to 23 percent of GDP as of March 2023. 

Foreign exchange reserves have also declined steadily since 2015 to $414.8 billion in September 2023. 

Latest articles

Sefe CEO Dr Egbert Laege and Adnoc executive vice president Fatema Al Nuaimi sign the long-term LNG supply deal

Adnoc signs 15-year supply deal for Ruwais LNG

Adnoc, the Abu Dhabi state oil company, has signed its first long-term sales and purchase agreement for the lower-carbon Ruwais liquefied natural gas (LNG) project. The 15-year, 1 million tonnes per annum (mtpa) agreement was signed with Sefe Marketing and Trading Singapore, a subsidiary of Germany’s Sefe – Securing Energy For Europe – at the […]

Lucid has begun taking orders for its Gravity electric SUV

Lucid reports higher revenue but steeper losses

Saudi-backed US luxury electric vehicle maker Lucid reported a larger net loss than last year in the third quarter, but said revenue rose 45 percent, slightly ahead of Wall Street expectations. The company’s losses of $992.5 million in Q3 compared with $630.9 million in 2023. Revenue reached $200 million, narrowly beating estimates of $198 million.  Lucid […]

Talabat couriers in Abu Dhabi. The company operates in eight countries across the Mena region

Talabat profits soar ahead of planned IPO

Food delivery company Talabat reported a 46 percent increase in third-quarter profits ahead of its planned IPO.  Delivery Hero, the Berlin-headquartered parent company of the business, said net income reached $98 million in the three months, up from $67 million the previous year. It said the increased profit was due to improved logistics efficiency, continued […]