Saudi Arabia’s Public Investment Fund has priced its inaugural sterling bond offering of £650 million ($829.80 million) under its existing Euro Medium-Term Note program.

The issuance is part of PIF’s strategy to continually diversify its funding sources.

The offering, which was more than six times oversubscribed, includes a £300 million tranche with a 5-year coupon and a £350 million tranche with a 15-year coupon.

Loans and debt instruments are one of PIF’s four primary funding sources, alongside retained earnings from investments, capital injections from the government, and government assets transferred to the wealth fund.

PIF holds an A1 rating with a positive outlook from Moody’s and an A+ rating with a stable outlook from Fitch.

In January, the sovereign wealth fund completed the pricing of a bond offering worth $5 billion.

According to a statement, the offering was over five times oversubscribed, with order books reaching $27 billion.

The offering in January was divided into three tranches – one valued at $1.75bn with a 5-year coupon maturing in 2029, another for the same amount with a 10-year coupon, and the final was valued at $1.5bn over a 30-year period.

In April, BlackRock Saudi Arabia and PIF signed a memorandum of understanding which entitled the former to establish a Riyadh-based multi-asset investment platform.

The platform will be anchored by an initial investment mandate of up to $5 billion from PIF, subject to the achievement of agreed milestones between the parties, the fund said in a statement.

In the same month, a report by the Sovereign Wealth Fund Institute said that PIF has climbed to fifth in a ranking of state-owned investment organizations, with its assets under management reaching $861 billion.

The analysis added that the wealth fund is marching toward its end-2025 target of $1 trillion in assets, aimed at diversifying the Kingdom’s economy.

In May, a report released by UK-based Brand Finance revealed that PIF is the world’s most valuable sovereign wealth fund, with a brand value of $1.1 billion.

According to the strategic consultancy firm, the fund garnered the top spot in the list due to its diverse investment strategy, trust in its name, and brand awareness, as well as its role as a catalyst for economic advancement in Saudi Arabia.