Saudi Arabia’s wealth fund gives initial guidance for debut green bonds: Document

Saudi Arabia’s Public Investment Fund has begun taking orders for its debut bond sale comprising three tranches of five, 10 and 100 years, a bank document showed on Wednesday, according to Reuters.

PIF gave initial price guidance for the green bonds at around 150 basis points (bps) over U.S. Treasuries (UST) for the five-year paper, around 190 bps over UST for the 10-year tranche and around 7%-7.25% for a 100-year tranche expected to raise $500 million, the bank document showed.

The five-year and 10-year tranches are expected to be of benchmark size, which typically means at least $500 million. Books have opened and the deal is expected to close later on Wednesday, the document showed.