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Saudi Arabia sovereign wealth fund sells US$5.5 billion green bonds

The bond was sold to a wide range of institutional investors globally, including Asia
By Goh Thean Eu   
February 14, 2023

Saudi Arabia’s Public Investment Fund (PIF) has sold US$5.5 billion of green bonds, the sovereign wealth fund’s second green debt offering after a $3 billion issuance last October.

The new three-tranche offering was oversubscribed, drawing $33 billion of orders, and was sold to “a wide range of institutional investors globally, including Asia”, PIF says in a statement on February 13.

It issued $1.75 billion each in seven and 30-year tranches, and another $2 billion in a 12-year tranche.

The wealth fund says the offering will further diversify its sources of debt funding.

“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,” Fahad AlSaif, head of the global capital finance division at PIF, says in the statement.

He says the offering “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”.

PIF had $620 billion of assets under management as of end-March 2022.