Saudi Arabia's sovereign wealth fund, the Public Investment Fund, has started receiving bids for a two-tranche sterling-denominated bond issue, fixed income news service IFR reported on Tuesday.
She added that the indicative price for the sale of the bonds was set at 135 basis points above UK government bonds for the five-year bond tranche and at 145 basis points above UK government bonds for the 15-year bond tranche.
The service said the bond offering, which is expected to be priced later today, will be of a benchmark size, typically defined as no less than $500 million.
The service said that the Public Investment Fund, which manages assets worth more than $700 billion, has appointed Barclays, BNP Paribas, HSBC and JPMorgan as joint global coordinators to arrange meetings with investors starting on Monday.
The sovereign wealth fund intends to sell unsecured bonds in two tranches of five-year and 15-year maturities under the GAC First Investment Company’s International Medium-Term Note Programme.
Last month, the kingdom raised $5 billion in a three-tranche sukuk sale amid strong investor demand.
