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Thursday, 29 September 2022

PIF opens up its finances for the first time as it takes green bond to market

The PIF has offered potential investors a look at its finances as it takes its first green bond to market, according to the Wall Street Journal, which got hold of a copy of the prospectus. The USD 606 bn sovereign wealth fund revealed that its total shareholder returns averaged 12% annually in the past five years, since Crown Prince Mohammed bin Salman took control of the fund in 2017. In the same period, “the total return on the S&P 500 index is roughly 60%, while the Saudi stock market index, where the PIF has the bulk of its portfolio, is up 52%,” the WSJ writes.

Other facts about PIF, drawn from the Journal story:

  • The fund returned about 3% per year before MbS revamped it;
  • PIF has assets under management of about USD 606 bn;
  • 69% of assets are in Saudi and the GCC;
  • It has created more than 500k jobs since MbS became involved;
  • It has deployed USD 2 bn in capital in infrastructure, manufacturing, logistics and retail in a co-investment agreement with Russia’s SWF.

PIF is a major investor in Egypt: The fund has pledged to invest some USD 10 bn in Egyptian companies as part of Saudi efforts to support our external position, which has been rocked by soaring commodity prices. It has already acquired minority stakes in four EGX-listed companies for USD 1.3 bn, and has set up an investment arm in Egypt to facilitate investments in the country. The fund is looking to invest in the infrastructure, real estate, healthcare, financial services, food and agriculture, manufacturing and pharma sectors.

More Asian nations are acting to prevent a currency crisis: A growing number of Asian nations are intervening to support their currencies as the relentless rise of the USD sends tremors through the region. South Korea became the latest country to act yesterday, announcing it would buy as much as USD 2.1 bn worth of sovereign bonds, while Taiwanese officials are considering introducing FX controls and imposing a ban on shorting stocks. This follows moves by Japan last week and China on Monday to curb the decline in their currencies: the CNY hit its lowest level against the USD since 2008 yesterday while the JPY is at its weakest since 1998.

But the interventions are not expected to end Asian assets’ downward trend and “will only help to slow the decline,” as a strong USD and “relatively low real rates” across Asia will continue causing pressure, one senior emerging-markets analyst told the business newswire.

ALSO WORTH KNOWING- A group of Wall Street banks and brokerages have been fined a combined USD 2.1 bn after employees were found to have sent texts over unauthorized messaging apps. (Securities and Exchange Commission | Commodity Futures Trading Commission)




-1.2% (YTD: -18.8%)



Buy 19.45

Sell 19.58



Buy 19.5

Sell 19.56


Interest rates CBE

11.25% deposit

12.25% lending




+1.4% (YTD: -1.0%)




+0.4% (YTD: +15.2%)




-0.9% (YTD: +4.6%)


S&P 500


+2.0% (YTD: -22.0%)


FTSE 100


+0.3% (YTD: -5.1%)


Euro Stoxx 50


+0.2% (YTD: -22.4%)


Brent crude

USD 89.26



Natural gas (Nymex)

USD 6.87




USD 1,670.00




USD 19,623

+3.4% (YTD: -57.7%)


The EGX30 fell 1.2% at yesterday’s close on turnover of EGP 449.09 mn (52.6% below the 90-day average). Foreign investors were net sellers. The index is down 18.8% YTD.

In the green: Ibnsina Pharma (+1.7%), GB Auto (+1.5%) and CIRA (+1.2%).

In the red: e-Finance (-3.6%), Qalaa Holdings (-2.7%) and Madinet Nasr Housing (-2.5%).

Asian markets are rebounding this morning after yesterday’s sell-off, with shares in China, Japan and South Korea all comfortably in green. US futures are trading lower this morning after stocks broke their six-day losing streak on the back of emergency moves by the Bank of England to calm concerns about the government’s tax plans.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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