The Public Investment Fund (PIF) began the sale of a senior, unsecured seven-year sukuk as it taps the debt market for a second time this year, Reuters reported yesterday, citing an arranging bank document it has seen.

The details are still scant: The offering’s initial price guidance is set at 115 basis points over US Treasuries, the document shows, according to the newswire. The size of the offering remains undisclosed.

ADVISORS- PIF has hired our friends at HSBC alongside Goldman Sachs and Standard Chartered as joint global coordinators for the offering.

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

REMEMBER- PIF closed a USD 3.5 bn global sukuk issuance in October, 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.

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