Make Kitco Your Homepage

Saudi Arabia's PIF expected to raise $2.5-2.75 bln with debut bonds

Kitco News

DUBAI, Oct 5 (Reuters) - Saudi Arabia's Public Investment Fund is expected to raise between $2.5 billion and $2.75 billion in its debut bond sale that will make it the first sovereign wealth fund with a green issuance, a bank document showed on Wednesday.

PIF is expected to sell between $1 billion and $1.25 billion in a five-year tranche and set the spread at 125 basis points (bps) over U.S. Treasuries. It is expected to sell $1 billion in 10-year paper at 165 bps over UST and $500 million in 100-year bonds at 6.7%, the bank document showed.

Demand topped $21.8 billion for the three tranches, with the five-year drawing over $10.3 billion in interest, the 10-year attracting more than $8.4 billion and the 100-year notes with more than $3.1 billion in orders, the document showed.

Reporting by Yousef Saba; editing by David Evans
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.