PIF begins selling sterling-denominated bonds

The IFR Fixed Income News Service reported on Tuesday that the Public Investment Fund has begun receiving offers to offer bonds denominated in sterling in two tranches.

According to CNBC, she added that the indicative price for selling bonds was set at 135 basis points above British government bonds for the five-year bond tranche and at 145 basis points above British government bonds for the 15-year bond tranche.

The bond offering, expected to be priced later in the day, will be at a standard size, defined as typically at least $500 million, the service said.

The service said that the Public Investment Fund, which manages assets worth more than $700 billion, assigned Barclays, BNP Paribas, HSBC and JP Morgan to act as joint global coordinators to arrange meetings with investors, starting yesterday, Monday.

The Public Investment Fund intends to sell unsecured bonds in two tranches with a maturity of 5 years and 15 years under the international medium-term bond program of GACI First Investment Company.

Last month, the Kingdom raised $5 billion in a three-tranche Sukuk sale amid strong investor demand.