#SaudiArabia's Wealth Fund PIF Hires Banks for Islamic Dollar Bond (Sukuk) - Bloomberg

Saudi Arabia's Wealth Fund PIF Hires Banks for Islamic Dollar Bond (Sukuk) - Bloomberg

Saudi Arabia’s sovereign wealth fund has hired banks for a debut Islamic dollar bond sale to help finance its global spending plans, people familiar with the matter said.

The Public Investment Fund, which manages about $778 billion in assets, mandated HSBC Holdings Plc, Standard Chartered Plc, Emirates NBD Bank PJSC and Al Rajhi Capital for the offering, the people said, asking not to be identified as the information isn’t public. More banks could be added later, they said.

The fund could raise about $3 billion, though the final size of the sukuk could be bigger depending on investor demand, the people said. The offering would be the PIF’s second this year after it raised $5.5 billion in green bonds in February.

A sale could happen before the end of the year, though a final decision hasn’t been made, the people said. The PIF may also decide to delay or shelve the plans because the fund has some financial flexibility, they said. Islamic bonds, or sukuk, is debt that complies with Shariah law.