PIF raises $5.5B after completion of second green bond issuance
The issuance comes after PIF's inaugural green bond in October 2022, the first-ever sustainable bond issued by a sovereign wealth fund.
has raised $5.5 billion with the completion of its second green bond issuance. In accordance with its Green Finance Framework, PIF will use the capital to finance its green investments.
The issuance comes after PIF's inaugural green bond in October 2022, the first-ever sustainable bond issued by a sovereign wealth fund and the first-ever 100-year green bond.
This issuance is expected to diversify the fund's sources of debt funding and drive its green investments in Saudi Arabia, as stated in a statement by the fund.
The latest bond issuance was over six times oversubscribed, with books exceeding $33 billion. It came in three tranches, including $1.75 billion for seven years; $2 billion for 12 years; and $1.75 billion for 30 years.
It was sold to a broad range of institutional investors across the globe, including Asia.
As with the issuance of the inaugural bond, PIF will issue an amount equal to the net proceeds of the issuance to fund eligible sustainable projects. These would include projects in renewable energy, pollution prevention and control, energy efficiency, green buildings, sustainable water management, and clean transportation.
In other news, PIF has acquired a 30% stake in Saudi Tabreed District Cooling Company, in line with its commitment to developing the region's utilities and low-carbon sectors.
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Edited by Affirunisa Kankudti
