Saudi Arabia’s Public Investment Fund will list its first dollar-denominated $3.5 billion Islamic bonds on the London Stock Exchange's International Securities Market, as the sovereign wealth fund continues to diversify its funding sources.
The dual-tranche international Islamic bonds, or sukuk, drew strong demand from international and regional institutional investors, PIF said on Thursday.
It was oversubscribed more than seven times, with the order book exceeding $25 billion. The five-year $2.25 billion sukuk matures in 2028 while the 10-year $1.25 billion sukuk matures in 2033.
Proceeds from the issuance will be used for its general corporate purposes, a statement added.
“This inaugural international sukuk issuance is another milestone for PIF’s medium-term capital raising strategy and a continuation of our efforts to diversify our funding sources,” Fahad AlSaif, head of PIF’s global capital finance division, said.
“The high level of investor demand validates PIF’s robust credit profile, which we are determined to maintain and enhance,” Mr AlSaif added.
The sukuk is part of the PIF’s newly established international trust certificate issuance programme, and it comes after the issuances of two green bonds worth $8.5 billion, and a $17 billion corporate loan last year.
Global sukuk issuance is forecast to “level off” in the range of $170 billion to $175 billion in 2023, after a 10 per cent fall in 2022 to $178 billion, Moody’s Investors Service said in a research report in March.
Although Saudi Arabia and Malaysia will continue to lead global sukuk issuances, the potential for growth in other jurisdictions also remains high, Moody’s said.
Long-term sovereign sukuk issuance is expected to stabilise in 2023 after two years of declines at around $80 billion, before rising to $85 billion in 2024.
Saudi Arabia, the top Arab economy, is the world’s largest Islamic finance market with total assets across sectors exceeding 3.1 trillion Saudi riyals ($826.7 billion), the governor of the Saudi Central Bank (Sama) said in August.
The kingdom is also the largest global issuer of sovereign sukuk. Its co-operative insurance sector is the fastest growing worldwide, approaching 27 per cent growth in 2022, Ayman Al Sayari said at the time.
The PIF is one of the world’s largest sovereign wealth funds, with about $620 billion in assets under management.
Loans and debt instruments represent one of PIF’s sources of funding. Other sources include retained earnings from investments, capital injections from the government and government assets transferred to PIF.
Over the past years, PIF has been working to diversify its funding sources.
The PIF has established 89 companies since 2017. It is focused on 13 strategic sectors and is mandated to pump $40 billion to $50 billion into the local economy annually to generate jobs and grow the non-oil economic base of the country.
UAE currency: the story behind the money in your pockets
In numbers
1,000 tonnes of waste collected daily:
- 800 tonnes converted into alternative fuel
- 150 tonnes to landfill
- 50 tonnes sold as scrap metal
800 tonnes of RDF replaces 500 tonnes of coal
Two conveyor lines treat more than 350,000 tonnes of waste per year
25 staff on site
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Killing of Qassem Suleimani
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
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The specs: 2018 Maserati GranTurismo/GranCabrio
Price, base Dh485,000 (GranTurismo) and Dh575,000 (GranCabrio)
Engine 4.7L V8
Transmission Six-speed automatic
Power 460hp @ 7,000rpm
Torque 520Nm @ 4,750rpm
Fuel economy, combined 14.3L (GranTurismo) and 14.5L (GranCabrio) / 100km
Warlight,
Michael Ondaatje, Knopf
UAE currency: the story behind the money in your pockets
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
The years Ramadan fell in May
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The Birkin bag is made by Hermès.
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.
