PIF plans to issue Islamic bond dollar-denominated ‎

The Public Investment Fund intends to issue Islamic bonds denominated in dollars, after it chose 3 foreign banks to carry out this process. The Fund assigned Citibank, HSBC, JPMorgan and Standard Chartered Bank to arrange this issuance, according to what Reuters explained. ‎

This is the Public Investment Fund’s second issuance this year, after the green bond issuance last February of this year, through which it raised 5.5 billion US dollars.

The Fund also announced in October last year the completion of the offering of its first international green bonds as part of the Public Investment Fund’s international program for issuing debt instruments. The Fund issued 100-year bonds, and the total offering amounted to 11.25 billion riyals ($3 billion) with the aim of financing or refinance the Fund’s green investments

In November 2022, the Fund also obtained a huge syndicated loan worth $17 billion (equivalent to 63.75 billion riyals) for a period of up to 7 years, while the syndicated loan is considered the largest of its kind in size and duration and the first of its kind in the number of global financial institutions participating in it. The deal was concluded in cooperation with 25 financial institutions in Europe, the United States of America, Asia, and the Middle East.

The Fund aims to become an active player in global drives and support the development of the local lending market, by diversifying debt instruments, terms and terms, further developing its financing strategy and stimulating the Public Investment Fund and its subsidiaries to participate in global and local debt markets.

The assets of the Saudi Public Investment Fund amount to about $776.7 billion (2.9 trillion riyals), according to the latest update, maintaining sixth place globally in the ranking of sovereign funds.

The Public Investment Fund aims to launch new sectors, build strategic economic partnerships, localize technologies and knowledge, in addition to creating more direct and indirect jobs in the local labor market.

The Fund is moving steadily towards achieving a strategy for the five years (2021 – 2025), as it aims to reach its assets to about one trillion dollars (1 trillion riyals) by the end of the year 2025 before reaching about 2 trillion dollars (7.5 trillion riyals) by the year 2030.