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

By Pramod Kumar
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.

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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. 

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