The Public Investment Fund plans to offer a senior, unsecured seven-year sukuk as it taps the debt market for a second time this year, Reuters reported yesterday, saying it has seen a document sent to the advisors tapped to lead the transaction.

ADVISORS- PIF has hired our friends at HSBC alongside Goldman Sachs and Standard Chartered as joint global coordinators for the offering. The size of the offering and its timeline remains unknown; it’s not clear when the bankers plan to take PIF on the road for the sale.

BACKGROUND- The PIF tapped the debt market last month, raising USD 5 bn from an offering that was more than 5x oversubscribed, with global institutional investors placing orders worth USD 27 bn.

REMEMBER- The PIF closed in October a USD 3.5 bn global sukuk issuance, two green bondofferings totaling USD 8.5 bn between 2022 and 2023, and lined up a USD 17 bn corporate facility in 2022. The fund plans to ramp up annual deployment capacity to USD 70 bn a year starting 2026, fund governor Yasir Al Rumayyan said at the FII Priority conference in Miami last week. This is a big step-up from its current annual spending clip of USD 40-50 bn.

PIF is looking to continue a heavy pace of investment even as the price of oil remains tepid and officials pace out some aspects of gigaprojects originally slated to wrap by 2030. The fund recently unveiled Alat, its advanced-technology manufacturing platform, which plans to invest USD 100 bn in the field through 2030.

Tags: