Saudi Arabia's PIF launches region's first major bond sale since Israel-Hamas conflict
bond sale, a document showed, the first high-profile debt issue from the region since last week's Israel-Hamas conflict unsettled regional markets.
The Public Investment Fund (PIF) plans to issue a dollar-denominated Islamic bond, and mandated Citi, HSBC, JPMorgan and Standard Chartered Bank to arrange a series of investor calls starting on Monday.
It will be the PIF's second international debt issue this year after it raised $5.5 billion from green bonds in February.
The plans come as the troubles in Israel have triggered an increase in volatility in the Middle East and North Africa (MENA) region and seen major investment banks such as JPMorgan and Morgan Stanley downgrade their view on the broader region.
A European-based investor said markets were closely watching how pricing and demand for the PIF Islamic bond would shape up in days to come, with the issue being seen as a weather vane for sentiment towards fixed income in the Gulf region more widely in the wake of the conflict.
The PIF is the chosen vehicle of Saudi Crown Prince Mohammed bin Salman, the kingdom's de facto ruler, to drive an economic agenda aimed at cutting reliance on oil.
A dual tranche of 5- and 10-year tenor senior sukuk, or Islamic bonds, will follow the investor meetings, the document seen by Reuters showed.
The sale is subject to market conditions and the document did not give an indication of the possible size of the issue.
The wealth fund has raised tens of billions, including a $17 billion loan in November, to fund a mammoth investment programme to create new industries and jobs, including building a planned futuristic city in the desert known as NEOM.
This year, the government transferred another 4% of Saudi Aramco shares worth $80
