The Public Investment Fund has announced the completion of its second international green bond issuance, raising US$5.5 billion, which will be used to finance and refinance the Fund's green projects, in line with its Green Finance Framework.
The Public Investment Fund has announced the completion of its second green bond issuance, raising US$5.5 billion.
The S Fund issued in October 2022 the first green bonds issued by global sovereign funds, including a first-time 100-year green bond.
The Green Bonds
In October 2022, the first green bonds issued by a global sovereign fund were issued, including the first 100-year green bonds issued by a sovereign fund. The bonds will enhance the Fund's financing resources for its activities and investments, and will allow it to tap into 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: USD 1.75 billion (equivalent to SAR 6.56 billion) for 7-year bonds, USD 2 billion (equivalent to SAR 7.5 billion) for 12-year bonds, and USD 1.75 billion (equivalent to SAR 6.56 billion) for 30-year bonds.
The first tranche of USD 1.75 billion (equivalent to SAR 6.56 billion) for 7-year bonds, the second tranche of USD 2 billion (equivalent to SAR 7.5 billion) for 12-year bonds and the third tranche of USD 1.75 billion (equivalent to SAR 6.56 billion) for 30-year bonds. <The issuance was well received by international institutional investors, including Asian investors. The second green bond issuance emphasizes the Fund's ability to diversify its funding sources and the continued confidence in the Fund's role as a key supporter of Saudi Arabia's economy and its position as one of the world's largest and most influential sovereign wealth funds.
The issuance comes as a confirmation of the Fund's ability to diversify its funding sources. <The issuance confirms the role of <a style="color: #993300;" href="https://amlak.net.As one of the world's most influential sovereign wealth funds, the Public Investment Fund (PIF) contributes to the diversification of the Kingdom's sources of income, in line with its commitment to its Green Finance Framework, which is in line with international best practices and complies with the standards set forth in the International Capital Market Association (ICMA) Green Bond Principles 2021 and the International Debt Market Association's (IDMA) Green Loan Principles 2021.
The PIF's Green Finance Framework is an extension of the International Capital Market Association's (ICMA) Green Bonds and Green Lending Principles for the year 2021, which are in line with international best practices. <Complementing the first issuance, the Fund intends to use the proceeds of this issuance to finance eligible green projects in the sectors of renewable energy, energy efficiency, sustainable management of water resources, pollution control, green buildings and clean transportation. <"The second issuance of green bonds emphasizes the Fund's role in supporting the Kingdom's green agenda, as an engine of national economic transformation, supporting the Kingdom's development and economic diversification efforts, and launching new and sustainable sectors," said Fahad Al Saif, Head of the General Department of Global Investment Finance. He added: "We witnessed an unprecedented demand from international institutional investors for the Fund's second issuance of green bonds, which confirms the continued success of the Fund's strategy to diversify funding sources and reflects the financial strength and creditworthiness of the Fund."
Fahad Al Saif added.
