Saudi Arabia’s Public Investment Fund (PIF) turned heads in the green debt market this week, raising €1.65 billion through a dual-tranche euro-denominated bond offering that saw investor demand soar.
The three-year tranche secured €800 million, priced sharply at Mid-Swap +58bps—well inside initial guidance of +90-95bps. Investors locked in an annual coupon of 2.75%, translating to a yield of 2.807%.
Meanwhile, the seven-year bond brought in €850 million, tightening to Mid-Swap +90bps from initial thoughts of +125bps. It carries a 3.375% coupon, yielding 3.422%.
The final orderbooks underscored the appetite for PIF debt, with €3.1 billion logged for the three-year and €3.8 billion for the seven-year tranche, excluding joint lead manager interest. Moody’s and Fitch are expected to assign ratings of Aa3 and A+, respectively, with settlement set for October 14.
The issuance, backed by the nearly $1 trillion sovereign wealth fund, will be listed on the London Stock Exchange’s International Securities Market. Proceeds are earmarked for financing and refinancing green projects under PIF’s August 2024 Green Finance Framework.
Crédit Agricole CIB, JP Morgan, and Societe Generale led as Joint Global Coordinators, with a broader syndicate of Barclays, BBVA, BNP Paribas, HSBC, IMI Intesa Sanpaolo, and ING handling bookrunning. Barclays also served as Green Structuring Advisor.
This comes on the heels of PIF’s $2 billion 10-year bond in September, which attracted over $7.5 billion in orders, highlighting continued robust demand for the fund’s debt instruments.
