Saudi PIF raises record $7bn in debt

• Development spend to persist despite war
• First bond offering since start of conflict
• More than three times oversubscribed

The Saudi Public Investment Fund has launched its largest-ever bond sale as the sovereign wealth behemoth seeks to maintain development spending despite the Iran war.

The PIF, which controls more than $900 billion in assets, raised $7 billion of debt on Thursday in its first bond offering since the start of the conflict.

The issue consisted of three-year, seven-year and 30-year tranches, which were more than three times oversubscribed.

They will be listed on the London Stock Exchange’s International Securities Market, according to Zawya, a news organisation affiliated with the LSE.

The bond spreads, an indicator of the issuer’s creditworthiness, tightened from 130-170 basis points above US treasury bonds, to 95-99 bps, suggesting strong investor demand.

The move follows the PIF’s $2 billion sale of 10-year Islamic bonds in January, which were priced at 85 bps.

The latest offering received an Aa3 and A+ grade from ratings agencies Moody’s and Fitch, respectively.

Saudi Arabia has indicated an intention to increase borrowing to fund Vision 2030 development projects. The finance ministry budgeted for a SAR165.4 billion ($44 billion) deficit in fiscal year 2026.

The budget does not include spending by the PIF.

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In the first quarter of the year, the ministry reported a record SAR126 billion deficit due to a jump in expenses associated with the war.

Despite the conflict, the PIF has said it intends to continue investing in pursuit of Vision 2030’s goals. Last month, it announced a new strategy with a larger focus on private-sector involvement and increasing returns on investments.