PIF completes 2nd issuance of green bonds at a value of $5.5 bln ‎

The Public Investment Fund announced the completion of the second issuance of its international green bonds, with proceeds amounting to $5.5 billion, which will be used to finance and refinance the fund’s green projects, in line with the fund’s green financing framework.

In October 2022, the fund issued the first green bonds issued by global sovereign funds, including green bonds issued for the first time for a hundred years. The bonds will enhance the Fund’s financing resources for its activities and investments, and will provide it with the opportunity to benefit from debt markets around the world and promote investments in green projects, in line with the Fund’s medium-term financing strategy.

The total number of subscription requests exceeded 33 billion US dollars, and the coverage ratio exceeded more than 6 times the total issuance, divided into the following tranches:

1) with a value of US $ 1.75 billion (equivalent to 6.56 billion Saudi riyals), for 7-year bonds.

2) with a value of US $ 2 billion (equivalent to 7.5 billion Saudi riyals), for 12-year bonds. ,

3) with a value of 1.75 billion US dollars (equivalent to 6.56 billion Saudi riyals), for 30-year bonds.

The issuance was well received by international investment institutions, including Asian ones. The second issuance of green bonds confirms the Fund’s ability to diversify its financing sources and the continued confidence in the Fund’s role as a main supporter of the Kingdom of Saudi Arabia’s economy and its position as one of the largest and most influential sovereign wealth funds in the world.

The issuance comes as an affirmation of the Fund’s role in diversifying the Kingdom’s sources of income, being one of the most influential sovereign wealth funds in the world, and an extension of the Fund’s commitment to its green financing framework, which is in line with international best practices and conforms to the standards specified in the Principles of Green Bonds issued. About the International Capital Market Association (ICMA) in 2021, and the Green Loan Principles issued by the International Debt Market Association (LMA) for the year 2021.

As a complement to the first issuance, the fund intends to use the proceeds of this issuance to finance qualified green projects in the sectors of renewable energy, energy efficiency, sustainable management of water resources, pollution control, green buildings and clean transportation.

On this occasion, Mr. Fahd Al-Saif, Head of the General Department of Global Investment Finance, said: “The second issuance of green bonds confirms the Fund’s role in supporting the Kingdom’s green agenda, as it is an engine for national economic transformation, supporting development and economic diversification efforts in the Kingdom, and launching new and sustainable sectors.”

He added, “We witnessed an unprecedented demand by international investment institutions for issuing the second fund of green bonds, which confirms the continued success of the fund’s strategy to diversify financing sources, and also reflects the financial strength and creditworthiness of the fund.”

Those interested can obtain more information about the green financing framework of the Public Investment Fund through the fund’s website.