Saudi Arabia's sovereign wealth fund will issue its first US dollar bond since the Iran war.

Golden Finance reports that on May 7th, the Saudi Public Investment Fund is issuing multiple dollar bonds, indicating that Gulf region issuers are returning to the public markets after market turmoil triggered by the Iran conflict. Sources familiar with the matter say that this sovereign wealth fund is issuing 3-year, 7-year, and 30-year benchmark dollar bonds, with initial price guidance 130 to 170 basis points above U.S. Treasuries. Final terms are expected to be announced later on Thursday. This issuance comes at a time when the Middle East primary market is tentatively restarting. Previously, the National Bank of Abu Dhabi recently completed an additional AT1 capital bond transaction, and First Abu Dhabi Bank also completed an Islamic bond issuance on Wednesday. These transactions mark a market turnaround, as issuers had generally shifted to private placements for funding during periods of heightened geopolitical uncertainty. The Saudi Public Investment Fund’s bond issuance will test investors’ risk appetite for longer-term assets in the Gulf, especially the 30-year tranche, and help re-establish pricing benchmarks for regional borrowers after weeks of subdued syndicated loan activity. (East News Agency)