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Saudi sovereign wealth fund PIF draws more than $7 billion orders for 10-year bond

BY Reuters | TREASURY | 09/08/25 07:41 AM EDT

ABU DHABI, Sept 8 (Reuters) - Saudi Arabia's almost $1 trillion sovereign wealth fund, the Public Investment Fund (PIF), has attracted more than $7 billion in orders for its 10-year U.S. dollar-denominated bond, expected to price later on Monday, fixed income news service IFR reported.

Initial price guidance for the bond was at around 120 basis points over U.S. Treasuries.

Last week, Saudi Arabia raised

$5.5 billion

from the sale of Islamic bonds, or sukuk, attracting strong investor demand which allowed the kingdom to tighten pricing substantially.

The PIF took an

$8 billion

write-down on some of its most high-profile gigaprojects - vast developments meant to reshape Saudi Arabia's economy and image - it said in its 2024 annual report released in August.

The wealth fund mandated Citi, HSBC (HSBC) and JPMorgan as joint global coordinators for its debt sale, with Bank of China, BNP Paribas, Goldman Sachs (GS), ICBC, and Standard Chartered (SCBFF) appointed joint active bookrunners.

The bond is expected to be benchmark-sized, typically understood to mean at least $500 million. (Reporting by Mohammad Edrees; Writing by Rachna Uppal; Editing by Andrew Cawthorne, Gareth Jones and Louise Heavens)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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