Published On 5/7/2026
Reuters reported that the Saudi Public Investment Fund intends to return to global debt markets by issuing bonds in three tranches of standard size, in a move aimed at supporting the Kingdom’s plans to diversify the economy and finance major projects within Vision 2030.
The agency quoted the IFR service, which specializes in fixed income news, on Thursday, saying that the fund set an initial indicative price (initial borrowing cost) for three-year bonds at about 130 basis points (1.3%) above US Treasury bond yields, while this indicative margin for seven-year bonds reached 135 basis points (1.35%), and 170 basis points (1.7%) for 30-year bonds.
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The bonds are expected to be priced later today, while Citigroup, Goldman Sachs, HSBC and JPMorgan Chase are acting as joint global coordinators for the issuance.
The new offering comes months after the fund entered the debt markets last January, when it raised $2 billion through the issuance of 10-year Islamic sukuks.
The Public Investment Fund, which manages assets approaching one trillion dollars, is the main pillar of the Saudi Vision 2030 program aimed at reducing the Saudi economy’s dependence on oil, by pumping huge investments in the tourism, technology, infrastructure and energy sectors.
High government spending
The return to debt markets coincides with the continued rise in Saudi government spending, in light of the repercussions of regional tensions related to the war on Iran, and the financing requirements for mega projects implemented by the Kingdom.
Data for the first quarter showed that Saudi Arabia recorded a budget deficit amounting to 125.7 billion riyals (about 33.5 billion dollars), with increased spending to support the economy and confront the repercussions of geopolitical developments.
The National Debt Management Center in Saudi Arabia announced this week the completion of the annual borrowing plan for the year 2026, after securing about 90% of financing needs before the recent developments in the region.
The government plan expects financing needs amounting to about 217 billion riyals (about 57.86 billion dollars), including financing the deficit and paying existing obligations.
