GACI First Investment pricing five-year, 10-year, 100-year bonds

By Mary-Katherine Stinson

Lexington, Ky., Oct. 5– GACI First Investment Co. was pricing a three-tranche deal comprised of bonds with tenors of five years, 10 years and 100 years (A1//A), according to a notice and additional information from a market source.

The first two tranches are each expected to be benchmark size. The third tranche was marked at $500 million.

The offer is the debut dollar green offering for the issuer.

Public Investment Fund is guaranteeing the notes.

Price talk for the bonds due Oct. 13, 2027 is in the Treasuries plus 150 basis points area, while talk for the bonds due Oct. 13, 2032 is in the Treasuries plus 190 bps area. The 100-year bond due Oct. 13, 2122 is being talked at the 7% to 7.25% area.

Before final pricing terms were available, the source noted that books for the shortest-dated tranche had gone above $10.3 billion with a 125 bps spread to Treasuries. On the middle tranche, books were above $8.5 billion with a 165 bps spread. The 100-year notes was shaping up at 6.7% with a book beyond $3.2 billion.

The purchase price was noted as around $80 for the long tranche.

Par calls will be one month before maturity for the five-year tranche (ISIN: XS2542162321), three months for the middle tranche (ISIN: XS2542162248) and six months for the longest tranche (ISIN: XS2542162677).

The global coordinators are BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs International (billing and delivery) and J.P. Morgan.

Credit Agricole CIB, First Abu Dhabi Bank, HSBC, Mizuho, SMBC Nikko, SNB Capital, Societe Generale and Standard Chartered Bank are the bookrunners for the Regulation S deal.

Passive bookrunners are ANB Capital, BofA Securities, Bank of China, GIB Capital, ICBC, IMI Intesa Sanpaolo, Morgan Stanley, MUFG, NATIXIS, Riyad Capital and Saudi Fransi Capital.

According to an offering circular in late September, Deutsche Bank AG, London Branch will be the fiscal agent.

Latham & Watkins (London) LLP, the Law Firm of Salman M. Al-Sudairi and Walkers (Dubai) LLP are advising the issuer.

Linklaters LLP and Zamakhchary & Co. are advising the arrangers.

Pricing was expected on Wednesday. The offer will settle on Oct. 13.

Proceeds will be used for general corporate purposes and for green projects.

Joint green structurers are Credit Agricole CIB and Standard Chartered Bank.

The notes will be listed on the International Securities Market and the London Stock Exchange.

GACI First Investment Co. is an offshore SPV fully owned by Saudi Arabia's Sovereign Wealth Fund, PIF, which guarantees the SPV's payment obligations.

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