PIF raises $3 bln from debut green bonds: Report

Logo of The Public Investment Fund (PIF)

The Public Investment Fund (PIF) raised $3 billion from its first green bonds issuance, with overall demand exceeding $22 billion, Reuters reported, citing a bank document.

The $500 million worth of 100-year notes will be sold at a yield of 6.7%, the document showed, adding that $1.25 billion in five-year bonds were launched at 125 basis points (bps) over US Treasuries and $1.25 billion in 10-year paper at 165 bps over US Treasuries.

The five-year tranche drew more than $10.3 billion of interest, the 10-year attracted over $8.5 billion and the 100-year more than $3.2 billion.

The offering of 100-year bonds came in light of investor enquiries.

The fund expects to invest more than $10 billion by 2026 in eligible green projects, including renewable energy, clean transport and sustainable water management.