Saudi Arabia's PIF expected to raise $2.5-2.75 bln with debut bonds

Participants attend the Saudi Green Initiative Forum to discuss efforts by the world's top oil exporter to tackle climate change, in Riyadh, Saudi Arabia, October 23, 2021. REUTERS/Ahmed Yosri/File Photo

DUBAI, Oct 5 (Reuters) - Saudi Arabia's Public Investment Fund is expected to raise between $2.5 billion and $2.75 billion in its debut bond sale that will make it the first sovereign wealth fund with a green issuance, a bank document showed on Wednesday.

PIF is expected to sell between $1 billion and $1.25 billion in a five-year tranche and set the spread at 125 basis points (bps) over U.S. Treasuries. It is expected to sell $1 billion in 10-year paper at 165 bps over UST and $500 million in 100-year bonds at 6.7%, the bank document showed.

Demand topped $21.8 billion for the three tranches, with the five-year drawing over $10.3 billion in interest, the 10-year attracting more than $8.4 billion and the 100-year notes with more than $3.1 billion in orders, the document showed.

Reporting by Yousef Saba; editing by David Evans

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