PIF announces pricing of $500 million tap to 2032 green bond and $1.5 billion sukuk offerings

• PIF priced a new $1.5 billion sukuk offering with a tenor of three years
• An existing green bond maturing in 2032 was upsized from $1.25 billion to $1.75billion

PIF priced offerings of a tap to its existing 2032 green bond and a new sukuk, raising an aggregate of $2 billion. Each offering was five times oversubscribed, with demand from a wide range of global investors. 

As part of the offerings, PIF issued a $1.5 billion sukuk with a tenor of three years. The existing green bond, due to mature in 2032, was upsized from $1.25 billion to $1.75 billion. 

In October 2022, PIF issued its inaugural green bond, the first-ever green bond issued by a sovereign wealth fund.

Proceeds from the green bond will be allocated for eligible green projects, in line with PIF’s Green Finance Framework. Funds from the sukuk issuance will be used for general corporate purposes. 

PIF’s bonds and sukuk are listed on the London Stock Exchange’s International Securities Market and are respectively part of PIF’s International Euro-Medium Term Notes Program and International Trust Certificates Program.

Loans and debt instruments represent one of PIF’s four main sources of funding. The remaining three are: capital injections from the government, government assets transferred to PIF and retained earnings from investments. 

PIF is rated A1 by Moody’s with a positive outlook and A+ by Fitch with a stable outlook.