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Saudi wealth fund raises $2bn to support mega-projects

A coral reef off Yabou' Island, part of Neom, which is one of the giga projects being developed by PIF Neom
A coral reef off Yabou' Island, part of Neom, which is one of the giga projects being developed by PIF

The Public Investment Fund has raised $2 billion through a combination of sukuk (Islamic bond) and green bond offerings to support its mega-project pipeline.

The Saudi wealth fund issued $1.5 billion in three-year sukuk and $500 million in green notes maturing in October 2032, Reuters said, citing a bank document.

PIF has tapped into the global bond market for the fourth time this year.



The sukuk was priced with at 75 basis points over US Treasuries, while the green bonds were set at 107 bps, following strong demand of $7.4 billion and $3.4 billion, respectively.

Last month, the sovereign wealth fund renewed a $15 billion credit facility with 23 global and regional banks for up to five years.  

PIF also signed six memoranda of understanding worth up to $50 billion with Chinese financial institutions for “encouraging two-way capital flows through both debt and equity”, though it gave no more details.