Saudi Arabia's Public Investment Fund (PIF) plans to intensify its fundraising efforts by diversifying its investor base and issuing debt through its subsidiaries, as it works to meet the kingdom's ambitious spending plans, Bloomberg reported on March 18.
According to informed sources, the $925bn sovereign wealth fund is considering issuing its first euro-denominated bonds this year, while also planning to attract US investors to the domestic market for the first time.
The fund is also encouraging some of its subsidiaries to borrow independently, with NEOM and Avallis expected to be among companies that might issue debt.
These plans form part of the fund's long-term financing strategy aimed at reducing the need for additional funding from the Saudi government, according to one source.
The PIF continues to strengthen its presence in global debt markets, having raised $4bn from bond markets in January, followed by a $1.25bn sukuk issuance by its mining unit last month.
Any new issuances would add to the $14.3bn raised by the sovereign fund and Saudi Arabia since the beginning of the year, reinforcing Saudi Arabia's position as one of the largest debt issuers in emerging markets over the past two years.
Representatives of the Public Investment Fund declined to comment on future financing plans.
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