PIF completes first international green bond offering, worth $3 ‎bln

The Public Investment Fund (PIF) announced today the completion of its first international green bond offering, as part of the International Public Investment Fund’s program to issue debt instruments. The total offering amounted to 3 billion US dollars (equivalent to 11.25 billion Saudi riyals), with the aim of financing or refinancing the Green Fund’s investments. This step comes as part of the fund’s efforts in line with the goals of the Kingdom’s ambitious vision.

The total number of subscription requests reached more than 24 billion US dollars (equivalent to 90 billion Saudi riyals), and the coverage ratio exceeded more than 8 times the total issuance, divided into the following segments:

The first is worth $1.25 billion (equivalent to 4.69 billion Saudi riyals) for 5-year bonds

The second one is worth $1.25 billion (equivalent to 4.69 billion Saudi riyals) for 10-year bonds

The third is worth $500 million (equivalent to 1.88 billion Saudi riyals) for 100-year bonds

The turnout by international investors for the fund’s first issue reflects their confidence in the fund’s role as a main supporter of the economy of the Kingdom of Saudi Arabia and the fund’s position as one of the largest and most influential sovereign wealth funds in the world.

The issuance of the initial bonds comes after the fund, last February, issued a document that includes the fund’s green finance framework, which is in line with international best practices and complies with the standards defined in the Green Bond Principles issued by the International Capital Market Association (ICMA) and The International Debt Market Association (LMA) Green Loan Principles

The Saudi sovereign Fund intends to use the proceeds of this issuance to finance qualified green projects, foremost of which are: renewable energy, sustainable management of water resources, pollution control, green buildings and transportation.

The Fund plays a key role in supporting the Kingdom’s Green Agenda as an engine for national economic transformation and supporting development and economic diversification efforts in the Kingdom. The Voluntary Market Initiative for Carbon Credit Trading in the Middle East and North Africa, and the Public Investment Fund’s Renewable Energy Program, which includes developing 70% of the Kingdom’s renewable energy generation capacity by 2030 in line with the Kingdom’s ambitious vision goals.

On this occasion, Fahd Al-Saif, Head of the General Department for Global Investment Finance, said: “The issuance of green bonds is a significant achievement within the fund’s journey of achievements, and part of the fund’s capital markets program that allows the fund to diversify its sources of financing, to promote effective investment in The Kingdom and the world, which contributes to achieving the objectives of the fund’s investment strategy.”

He added: “We have witnessed an unprecedented turnout by international investors, which is a testament to the fund’s financial position, its adherence to the best global standards of governance, as well as the diversity of its business and investment portfolio. This important achievement also reflects the leading role that the Fund plays in transforming the national economy in accordance with the objectives of the Kingdom’s Vision 2030, and its commitment to providing many sustainable investment opportunities.”