RIYADH: Saudi Arabia’s Public Investment Fund has released initial pricing indications for its three-tranche US-dollar-denominated bond, as revealed in a bank document seen by Arab News. The first, maturing in 2029, proposes a spread of 150 basis points over US Treasuries for its five-year bonds, featuring a par call option exercisable after one month. The second tranche, maturing in 2034, suggests price guidance of 175 bps over US Treasuries for its 10-year bonds, accompanied by a three-month par-call provision. Meanwhile, the third option, maturing in 2054, indicates a spread of 235 bps over the same benchmark for its 30-year option, along with a par call option of six months. Citi, Goldman Sachs International, and J.P. Morgan are working as joint global coordinators for the bond offerings, according to the document. It is anticipated that the issuance will receive a Fitch rating of A+ in keeping with the agency’s Government-Related Entities Rating Criteria which categorizes PIF as an entity credit-linked to the Saudi government, positioning its ratings with those of the state. This alignment is determined by Fitch’s evaluation of the strength of linkage with Saudi Arabia and the government’s incentive to provide support to PIF. In October 2023, the fund successfully concluded its Shariah-compliant bonds totaling $3.5 billion. The sukuk offering attracted oversubscription more than seven times, with orders surpassing $25 billion, showcasing investor confidence in PIF, according to an official statement. The overall issuance of Shariah-compliant bonds comprised two tranches. The initial tranche, amounting to $2.25 billion, matures in 2028, while the second tranche, totaling $1.25 billion, has a maturity set in 2033. Speaking in October 2023, Fahad Al-Saif, head of PIF’s Global Capital Finance Division, said: “This inaugural international sukuk issuance is another milestone for PIF’s medium-term capital raising strategy and a continuation of our efforts to diversify our funding sources.” As a global, impactful investor, PIF manages a top-tier portfolio that emphasizes sustainability and spans domestic and international realms. Ranking among the world’s largest sovereign wealth funds, PIF’s investments drive innovation, reshape industries, foster job creation, and contribute to the growth of Saudi Arabia’s economy.