PIF raises US $5.5bn with second green bond
The issuance is said to reflect PIF’s role as the driver of economic transformation in Saudi Arabia
Saudi Arabia’s Public Investment Fund (PIF) has completed its second green bond issuance, which raised US $5.5bn to finance or refinance its green investments, in alignment with its Green Finance Framework. The move will further diversify PIF’s sources of debt funding, in line with its Medium-Term Capital Raising strategy, PIF stated.
According to a statement, the issuance follows its inaugural green bond in October 2022, which was said to be the first-ever green bond issued by a sovereign wealth fund, and the first-ever 100-year green bond.
The latest bond issuance was said to have been more than six times oversubscribed, with books exceeding $33bn. It was issued in three tranches, comprising: $1.75bn for seven years; $2bn for 12 and $1.75bn for 30 years. The bond was sold to a wide range of institutional investors globally, including Asia.
“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,” said Fahad AlSaif, Head of Global Capital Finance Division at PIF.
In late January 2023, PIF and Samsung C&T said they would jointly develop construction tech and modular housing solutions.
The issuance is said to reflect 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 its commitment to its green finance framework.
According to PIF, its Green Finance Framework was built 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.
AlSaif remarked, “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.”
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.
In late January 2023, AlUla Development Company launched operations to support the development of AlUla.
These include projects in the space of renewable energy, energy efficiency, sustainable water management, pollution prevention and control, green buildings, and clean transportation, AlSaif concluded.
In early February 2023, PIF & AeroFarms signed a deal to develop vertical farms across the MENA region.
