Saudi PIF raises $5.5bn through its second green bond

Saudi Arabia's sovereign wealth fund PIF (The Public Investment Fund) said it has completed its second green bond issuance which raised $5.5 billion to finance or refinance its green investments, in accordance with its Green Finance Framework.


The issuance follows PIF’s inaugural green bond in October 2022, the first-ever green bond issued by a sovereign wealth fund and the first-ever 100 year green bond, said a statement from PIF.


It will further diversify PIF’s sources of debt funding, in line with its Medium-Term Capital Raising strategy, it stated.


The latest bond issuance was more than 6 times oversubscribed, with books exceeding $33 billion. It was issued in 3 tranches, comprising: $1.75 billion for 7 years; $2 billion for 12 and $1.75 billion for 30 years. The bond was sold to a wide range of institutional investors globally, including Asia.


The issuance reflects PIF’s role as the driver of economic transformation in Saudi Arabia and as one of the largest and most impactful investment funds in the world, in addition to demonstrating PIF’s commitment to its green finance framework. 


Fahad AlSaif, Head of Global Capital Finance Division at PIF, said: "Our second green bond issuance underlines the role that PIF is playing in supporting Saudi Arabia’s green agenda, as well as diversifying the local economy and unlocking new and sustainable sectors."


PIF’s Green Finance Framework was created in line with best market practice, 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.


"Strong demand from international institutional investors for this second issuance is a testament to the ongoing success of PIF’s capital raising strategy, its credit profile and financial strength," he added.


As with its inaugural bond issuance, PIF said it will allocate an amount equal to the net proceeds of the issuance to fund eligible green projects in accordance with its Green Finance Framework.


These include projects in the space of renewable energy, energy efficiency, sustainable water management, pollution prevention and control, green buildings and clean transportation, he added.



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