PIF completes second $5.5 bln green bond issuance

Logo of Public Investment Fund (PIF)

The Public Investment Fund (PIF) completed its second green bond issuance which raised $5.5 billion to finance or refinance PIF’s green investments, in accordance with its Green Finance Framework.

In an emailed statement to Argaam, the Kingdom’s sovereign wealth fund said tthe issuance followed the inaugural green bond in October 2022, the first-ever green bond issued by a sovereign wealth fund and the first-ever 100-year green bond. It will further diversify PIF’s sources of debt funding, in line with its Medium-Term Capital Raising strategy.

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 (SAR 6.56 billion), 7 years.

- $2 billion (SAR 7.5 billion), 12 years.

- $1.75 billion (SAR 6.56 billion), 30 years.

The bond was sold to a wide range of institutional investors globally, including Asia. The issuance reflects PIF’s role as the driver of economic transformation in Saudi Arabia.

Fahad AlSaif, Head of Global Capital Finance Division said: “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.”

“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, AlSaif added”