Riyadh: The Public Investment Fund (PIF) completed its second green bond issuance which raised $5.5 billion to finance or refinance PIF’s green investments, it said on Friday.
This follows PIF’s inaugural green bond in October 2022. “It will further diversify PIF’s sources of debt funding, in line with its Medium-Term Capital Raising strategy,” it said in a statement.
This latest bond issuance was more than 6 times oversubscribed, with books exceeding $33 billion. It was issued in 3 tranches, comprising:
- $1.75 billion (SR 6.56 billion), 7 years
- $2 billion (SR 7.5 billion), 12 years
- $1.75 billion (SR 6.56 billion), 30 years
The bond was sold to a wide range of institutional investors globally, including Asia.
As with its inaugural bond issuance, PIF will allocate an amount equal to the net proceeds of the issuance to fund eligible green projects. This include projects in the space of renewable energy, energy efficiency, sustainable water management, pollution prevention and control, green buildings and clean transportation.
“PIF’s 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,” said Fahad Al Saif, Head of Global Capital Finance Division. “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.”