PIF successfully prices inaugural GBP bond offering

The Public Investment Fund (PIF) successfully priced its inaugural bond offering in sterling today, June 5, at £650 million under its existing Euro Medium-Term Note program. The issuance is part of PIF’s strategy to continually diversify its funding sources.

In an emailed statement to Argaam, PIF said the offering was more than 6x oversubscribed, and comprised of the following tranches:

A £300 million (SAR 1.44 billion), five-year coupon, and a £350 million (SAR 1.68 billion), 15-year coupon.

Loans and debt instruments represent one of PIF’s four primary sources of funding. The other sources are retained earnings from investments, capital injections from government and government assets transferred to PIF.