Deal strengthens PIF’s commitment to green financing and sustainable development initiatives in Saudi Arabia.
PIF today announced the pricing of a debut €1.65 billion green bond offering, in accordance with its Green Finance Framework.
The offering was more than six times oversubscribed, with orders exceeding €10 billion and participation from a wide range of global institutional investors. PIF issued the bonds in two tranches, comprising:
- EUR 0.8 billion (equivalent to SAR 3.5 billion), three years coupon
- EUR 0.85 billion (equivalent to SAR 3.7 billion), seven years coupon
PIF will list the bonds on the London Stock Exchange’s International Securities Market, as part of PIF’s international bond program.
In accordance with its Green Finance Framework, PIF will allocate proceeds of the offering to fund eligible green projects, such as renewables, energy efficiency, sustainable water management, waste management and recycling, and other utilities.
“This inaugural euro- denominated green bond represents a continuation of PIF’s capital-raising strategy of diversifying PIF’s funding profile, supporting the development of PIF’s green projects, and complementing Saudi Arabia’s green agenda.” Ahmed Alrobayan, Head of Public Markets, Global Capital Finance.
This is the third time that PIF has offered green bonds. PIF previously issued green bonds in October 2022, the first-ever green bond issuance by a sovereign wealth fund which included the first-ever 100-year green bond. A second green bond issuance followed in February 2023. In September 2024, PIF executed a tap on the 10-year tranche of bonds issued in October 2022.
PIF has built its medium-term capital-raising strategy on diverse sources of funds and a range of instruments, including bonds, sukuk, loans and commercial paper.
PIF is one of the world’s most impactful investors, enabling the creation of key sectors and opportunities that help shape the global economy, deliver returns, and drive the economic transformation of Saudi Arabia. PIF is rated Aa3 by Moody’s with a stable outlook, and A+ by Fitch, also with a stable outlook.
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