Middle East

PIF Announces Successful First $3 Billion Green Bond Issuance

RIYADH — The Public Investment Fund (PIF) completed its first-ever bond issue (the Green Bond of the Century) on Thursday, raising $3 billion to finance or refinance the PIF’s green investments, according to the Green Finance Framework. did.

PIF’s green investments include eligible green projects in renewable energy, energy efficiency, sustainable water management, pollution prevention and control, green buildings, and clean transportation.

Bonds were over eight times oversubscribed and orders exceeded $24 billion. Issued in three tranches.

– $1.25 billion (SR469 million), 5 years, 5% coupon

– $1.25 billion (SR469 million), 10 years, coupon 5.25%

– $500 million (SR1.88 billion), 100 years, coupon 5.375%

Strong international investor demand for the first PIF issuance reflects confidence in the fund’s role as an integral pillar of the Saudi economy and its status as one of the largest and most influential sovereign wealth funds. I’m here.

This green bond issuance follows PIF’s Green Finance Framework issued in February 2022. The framework has been developed in line with best market practices and is fully compliant with the International Capital Market Association’s Green Bond Principles 2021 and the Loan Market Association’s Green Loan Principles 2021.

This issuance is a continuation of the PIF initiative to support Saudi Arabia’s green agenda and marks the launch of the MENA Voluntary Carbon Market and the various initiatives spearheaded as part of PIF’s commitment to develop 70% of Saudi Arabia. It follows previous announcements by PIF, including renewable projects. Renewable energy capacity outlined in Saudi Vision 2030.

Fahad AlSaif, Head of Global Capital Finance at PIF, said: The PIF will also be able to further diversify its debt financing sources, helping drive high impact investments in Saudi Arabia and internationally.

“The strong investor support for this issuance is a testament to PIF’s strong financial profile, world-class governance, exceptional green projects and the diversity of its business and portfolio. It reflects the PIF’s leading role in transforming the Saudi economy and the wide range of green and sustainable investment opportunities that this transformation will bring.” — Spa

https://saudigazette.com.sa/article/625766/SAUDI-ARABIA/PIF-announces-successful-completion-of-$3bn-inaugural-green-bond?ref=rss&format=simple&link=link PIF Announces Successful First $3 Billion Green Bond Issuance

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