Saudi Public Investment Fund Appoints Banks for First Issuance

A document revealed today, Monday, that the Saudi Public Investment Fund (PIF), the sovereign wealth fund of the Kingdom, has appointed banks to arrange its first issuance of Islamic bonds (sukuk) denominated in dollars. The fund, which has assets valued at $778 billion, has designated Citigroup, HSBC, JPMorgan, and Standard Chartered as joint global coordinators to organize a series of meetings with investors starting today. The document indicated that this will be followed by the issuance of sukuk in two tranches with maturities of five years and ten years. The sale will take place according to market conditions. This issuance will be the second for the Public Investment Fund this year after raising $5.5 billion from green bonds in February. The Public Investment Fund is the preferred tool of Saudi Crown Prince Mohammed bin Salman to lead an economic agenda aimed at reducing dependence on oil. The sovereign wealth fund has raised tens of billions, including a $17 billion loan in November, to finance a massive investment program aimed at establishing new sectors and creating job opportunities, including the construction of a planned futuristic city in the desert known as Neom.