Saudi wealth fund to issue dollar bonds for first time since Iran conflict

Saudi Arabia's Public Investment Fund (PIF) is issuing multi-tranche dollar bonds, signaling a return by Gulf issuers to public markets after recent disruptions from the conflict with Iran. According to sources, the PIF is offering three-year, seven-year, and 30-year benchmark dollar bonds, with initial price guidance set at 130 to 170 basis points over U.S. Treasurys. Final terms are expected to be confirmed later today, May 7. The issuance comes as the Middle East's primary bond market cautiously reopens. Recently, the UAE's National Bank finalized an Additional Tier 1 (AT1) bond transaction, and First Abu Dhabi Bank completed a sukuk (Islamic bond) issuance on May 6. Previously, issuers had shifted to private funding channels amid heightened geopolitical uncertainty. The PIF's bond sale, particularly the 30-year tranche, is seen as a key test of investor risk appetite for long-dated assets from the Gulf. It is also expected to help reset pricing benchmarks for regional borrowers following several weeks of subdued activity in syndicated loans.