PIF plans bond issuance and reorganisation

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) is hoping to raise capital through a sterling-denominated notes offering.

The fund, which has around US$925 billion in assets, has hired four banks (Barclays, BNP Paribas, HSBC and JP Morgan) as “joint global coordinators” for the issuance.

The PIF plans to sell the senior unsecured sterling-denominated dual-tranche note offering with maturity of five years and 15 years.

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The move comes just weeks after the fund raised $5 billion through a three-part sukuk issuance.

It also comes ahead of a rumoured management reshuffle. According to a Reuters report, the fund is looking to reduce the responsibilities of its governor Yasir Al-Rumayyan and also scale back some of its so-called ‘giga-projects’ in favour of smaller schemes with a greater chance of success.

The reports of a reorganisation come in the wake of the problems facing one of the kingdom’s flagship projects – the Line, a futuristic ‘linear’ city in the desert that was set to be 170km long but which has been reduced to just 5km due to rising costs.

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In addition, the PIF is also looking to attract more foreign investment for its projects while also hoping to scale back the cost of numerous consultants hired to advise on certain projects.

The fund has seen its assets increase sharply over the past ten years – from just over $150 billion in 2015 to $925 billion in 2024.

 

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