Saudi Arabia’s PIF expected to raise $2.5-2.75 billion with debut bonds

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FILE PHOTO: FILE PHOTO: Saudi Green Initiative Forum in Riyadh

DUBAI (Reuters) – Saudi Arabia’s Public Investment Fund is expected to raise between $2.5 billion and $2.75 billion in its debut bond sale that will make it the first sovereign wealth fund with a green issuance, a bank document showed on Wednesday.

PIF is expected to sell between $1 billion and $1.25 billion in a five-year tranche and set the spread at 125 basis points (bps) over U.S. Treasuries. It is expected to sell $1 billion in 10-year paper at 165 bps over UST and $500 million in 100-year bonds at 6.7%, the bank document showed.

Demand topped $21.8 billion for the three tranches, with the five-year drawing over $10.3 billion in interest, the 10-year attracting more than $8.4 billion and the 100-year notes with more than $3.1 billion in orders, the document showed.

(Reporting by Yousef Saba; editing by David Evans)

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