Saudi Arabia returns to debt market as Gulf sovereign funds deploy across India, Africa

Sovereign money is doing nearly all the work in today’s column, even if it’s not all moving in lock-step. Riyadh is back in the debt market it had said it was finished with for the year; Abu Dhabi’s funds are writing checks into Indian infrastructure, African power, and US and European private credit; and PIF is taking the road less traveled, cutting one last small check to walk away from LIV Golf.

Saudi Arabia is back in the international debt market — which it said in May it was done with for the year. The Kingdom issued USD 3.25 bn in two benchmark-sized USD sukuk tranches at five and 10 years, with the order book exceeding USD 16.5 bn yesterday, according to a statement by the National Debt Management Center. The issuance — structured in two tranches, with 5-year and 10-year maturity — was 4x oversubscribed, which helped the Kingdom secure investors at yields 30 bps below the indicative rating. The Reg S notes are expected to be rated Aa3 by Moody’s and A+ by Fitch, according to Zawya.

The issuance follows news that the Kingdom is testing the waters for a possible USD 8 bn package of loans from global banks, Bloomberg reports, citing sources familiar with the discussions. Aramco is also shopping for suitors for possible backers for a credit line. Both talks are in early stages, with the sources flagging that either transaction could fall through.

The Kingdom’s economy is coming under mounting pressure from the war with Iran and Houthi threats. In 2Q, real GDP contracted 4.8% y-o-y, marking the first annual decline since 4Q 2023 and its steepest since 2Q 2020. The downturn was driven almost entirely by the oil sector, where activities plunged 24.7% as Aramco curtailed output following Hormuz disruptions.

The Public Investment Fund (PIF) is writing one last (small) check to LIV Golf. The fund will lend the league less than USD 100 mn to get through a bankruptcy that could be filed as soon as next week. The debtor-in-possession facility will be the last bit of PIF money going into the league, the Financial Times reports, citing people familiar with the matter. LIV has set up a New Jersey subsidiary, allowing it to file for Chapter 11 there.

LIV has reportedly asked players to write off most of what it owes them after 2026, offering settlements worth a fraction of their contracted guarantees. The FT ties the “cents on the USD” payments to PIF’s refusal to fund the gap. A prepackaged bankruptcy would let LIV clear those claims while paying players in equity and other terms tied to LIV 2.0, the league’s scale-down, 10-event 2027 format. Players could settle and join the new league, settle without joining, or pursue their contractual payments as unsecured creditors alongside vendors and advisers already owed USD mns.

Alpha Dhabi has doubled down on its private credit JV with Mubadala, even as the underlying portfolio barely moved. ADX-listed Alpha Dhabi Holding is doubling its capital commitment to USD 1 bn in MICAD Credit JV and raising its ownership stake in the Mubadala Capital joint venture to 40% from 20%, according to a disclosure (pdf). The JV will also broaden its mandate beyond its existing US and European direct lending focus into other private credit strategies.

Adia backs USD 3.2 bn India fund: In its latest India play, the Abu Dhabi Investment Authority (Adia) took part in a roughly USD 2 bn fundraise by the National Investment and Infrastructure Fund (NIIF), India’s quasi-sovereign wealth fund, according to an NIIF statement. The specific value of Adia’s participation, which came through a subsidiary, was not disclosed. Overall, the Indian government anchored the close.

Abu Dhabi’s ePointZero is acquiring a 90% stake in Azura Power Holdings, an independent power producer with 752 MW of operating capacity across Nigeria, Senegal, and Mozambique, according to a company statement. EPointZero, the energy infrastructure arm of 2PointZero Group, is buying out existing investors Actis and Africa50 through a new acquisition vehicle formed with Amaya Capital, the firm that founded Azura in 2010 and will retain the remaining 10%. The transaction value wasn’t disclosed. Closing is subject to customary regulatory approvals across the three countries.

Why it matters: This is ePointZero’s first acquisition in African power generation and its fourth cross-border energy agreement since November, following a solar development partnership with Elsewedy Electric in Zambia, a USD 2.25 bn buy into US gas pipelines through Traverse Midstream in July, and a renewables JV with Adani Green Energy in India in April. It also comes as regional power demand in sub-Saharan Africa is projected to nearly double by 2040, with electrification rates currently sitting at 55%.

Turkey’s sovereign wealth fund is stepping into ownership of the country’s national EV project. The Turkey Wealth Fund (TVF) and Turkcell are set to buy the combined 46% stake in TOGG held by Vestel Elektronik and Anadolu Group Holding, Reuters reports, citing three sources close to the talks. Deal value isn’t disclosed, while an agreement is expected soon.

Why it matters: The unlisted carmaker sold 39k vehicles domestically in 2025 and is running 30% ahead y-o-y through July at 25.8k units, per ODMD data, with last year’s TRY mult-bn losses narrowing sharply in 1H 2026. But industry sources tell Reuters that no Turkish carmaker turns a profit below production well into the hundred thousands units a year — a scale TOGG hasn’t touched. TVF is buying ahead of that math working out, not after, much as it did when it took control of Turkcell in 2020.

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El Arabi Pharma Group (EPG) is looking to float a minority stake on the EGX in 3Q 2027, with proceeds earmarked for expansion over the following two years, Al Borsa reports, citing Chairman Sherif El Masry. The IPO is expected to fetch around USD 100 mn, though it is unclear whether the offer is purely primary, secondary, or both. EFG Hermes is among those in the running for the mandate.

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