(Bloomberg) -- Saudi Arabia’s wealth fund may ramp up borrowing further after raising $7 billion across two bond sales so far this year, according to Morgan Stanley.

“We do not think that the PIF will stop,” Morgan Stanley & Co International PLC strategist Pascal Bode wrote in a note. He expects to see another transaction in the second half of 2024 as the Public Investment Fund’s treasury assets drop and spending needs continue to rise. It’s possible that would take total issuance to around $10 billion to $11 billion, Bode added.

The sovereign wealth sold $2 billion from an Islamic bond offering yesterday after raising $5 billion in January from the sale of high-grade bonds. PIF, which manages more than $700 billion, joins a rush of offerings from emerging-market governments that has taken their sovereign issuance to the highest for this time of year in at least two decades. 

Read More: Emerging Markets See Biggest Rush in Two Decades for New Bonds

The PIF, a key part of Crown Prince Mohammed bin Salman’s efforts to diversify the Saudi economy from oil, is raising money as it aims to invest hundreds of billions of dollars in the coming years on everything from electric vehicles to semiconductors, tourism resorts and sports. It said last week that it’s set to increase annual deployment of capital to $70 billion a year after 2025.

PIF sold seven-year dollar sukuk at 85 basis points over the Treasuries on Tuesday, according to a person familiar with the matter. Order books were above $16 billion, including joint lead managers’ interest. It was initially pitched at 115 basis points area above the Treasuries.

The wealth fund mandated Goldman Sachs Group Inc., HSBC Holdings Plc and Standard Chartered Plc as global coordinators for the sale.

PIF has not yet responded to a request to comment. 

--With assistance from Kevin Kingsbury.

(Updates with Morgan Stanley’s view starting in first paragraph.)

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