Saudi Public Investment Fund bonds were issued at a premium of 85 basis points over US Treasury bonds. Issued Public Investment Fund Saudi Arabia, the Kingdom’s sovereign wealth fund, issued seven-year dollar-denominated sukuk worth $2 billion after attracting more than $16 billion, as a bank document seen by Reuters showed.
The document stated that the sukuks were issued at a premium of 85 basis points over US Treasury bonds, which is less than the initial indicative price of 115 basis points over the bonds themselves after the offering received purchase orders worth more than $16 billion.
And join Public Investment Fund, along with the Kingdom’s government, last month led to a wave of bond issuance by emerging markets seeking to benefit from high demand for debt instruments before central banks cut interest rates expected later this year.
The fund raised $5 billion through the sale of conventional bonds in three tranches in January and $3.5 billion from the sale of sukuk in October.
The Public Investment Fund spent about a quarter of the total $124 billion spent by sovereign wealth funds around the world last year, according to a report issued in January by the Global SWF, which tracks these funds.
The Fund plans to increase the volume of its capital investment to $70 billion annually after 2025, compared to between $40 and $50 billion currently, according to what the Fund’s Governor, Yasser Al-Rumayyan, said last week in Miami, United States.
