PIF prices inaugural int’l sukuk issue at $3.5 bln, orders surpass $25 bln

Logo of Public Investment Fund (PIF)

The Public Investment Fund (PIF) successfully priced today, Oct. 19, its first dollar-denominated Shariah-compliant trust certificates (sukuk). The total amount of the issuance is $3.5 billion, consisting of two tranches:

- $2.25 billion, five-year sukuk maturing in 2028.

- $1.25 billion, 10-year sukuk maturing in 2033.

The issuance will be listed on London Stock Exchange plc’s International Securities Market (ISM). The sukuk issuance was more than seven times oversubscribed, with orders exceeding $25 billion (SAR 94 billion), reflecting investor confidence in PIF. Proceeds from the issuance will be used by PIF for its general corporate purposes, the Kingdom’s sovereign wealth fund said in an emailed statement to Argaam.

The sukuk was issued pursuant to PIF’s newly established international trust certificate issuance program. It follows its two issuances of green bonds, under PIF’s medium-term capital raising strategy, amounting in aggregate to $8.5 billion, including the first-ever century green bond and the first ever green bond issued by a sovereign wealth fund, as well as a $17 billion corporate loan in 2022, as part of PIF’s strategy to diversify its funding sources.

Fahad AlSaif, Head of PIF’s Global Capital Finance Division, said: "This inaugural international sukuk issuance is another milestone for PIF’s medium-term capital raising strategy and a continuation of our efforts to diversify our funding sources.”

The high level of investor demand validates PIF’s robust credit profile, which we are determined to maintain and enhance. The success of this transaction also reflects PIF’s ongoing commitment to delivering on its mandate and Vision 2030 targets, AlSaif added.