IPT: Zhengding State-Owned Assets Holding CNY Reg S 3Y 6% area

IPT: Zhengding State-Owned Assets Holding CNY Reg S 3Y 6% area

Saudi Arabia’s Public Investment Fund (PIF), one of the world's largest sovereign wealth funds, has issued a $2 billion 10-year Reg S bond. The bond was priced at par with a reoffer price of 99.977%, a final coupon rate of 5%, and a yield of 5.003% . The bond, launched by GACI First Investment Company, a special-purpose vehicle (SPV) of Saudi’s sovereign wealth fund, was backed by PIF as a guarantor under its Euro Medium Term Note Programme.

The bond was issued with an initial tightness of T+120 bps, with the spread set at T+95 and a par call of 100% (plus accrued and unpaid interest) on or after the date falling three months prior to the maturity date. The order books for the senior unsecured bond peaked at $7.75 billion, excluding JLM interest .

The bond is listed on the London Stock Exchange’s International Securities Market and the proceeds will be used for general corporate purposes. The settlement date is set for September 15. The global coordinators for the bond issuance were Citi, HSBC, and JP Morgan, while Bank of China, BNP Paribas, Goldman Sachs, ICBC, and Standard Chartered were named as joint active bookrunners. Barclays, BofA, and Mizuh were appointed as joint passive bookrunners .

This issuance marks the latest in a series of bond market taps by PIF since January, raising a total of $4 billion from a two-tranche deal. In April, PIF raised $1.25 billion through a 7-year sukuk, and last week, Saudi Arabia raised a further $5.50 billion from the sale of dual-tranche dollar-denominated Islamic bonds .

References:
https://www.zawya.com/en/capital-markets/bonds/saudis-pif-backed-2bln-10-year-bond-priced-books-over-775bln-jx6z84xw