The Public Investment Fund (PIF) concluded its second green bond issue on Friday i.e., 10/02/2023 , raising $5.5B to support or refinance the PIF’s green projects. This follows PIF’s inaugural green bond in October 2022. “It will further diversify PIF’s sources of debt funding, in line with its Medium-Term Capital Raising strategy,” it reportedly said in a statement.
This latest bond issuance was more than 6 times oversubscribed, with books exceeding $33B. It was issued in 3 tranches, comprising: $1.75B (SAR 6.56B) 7 years, $2B (SAR 7.5B) 12 years, and $1.75B (SAR 6.56B) 30 years. The bond was offered to a diverse group of institutional investors worldwide, including those in Asia.
PIF will distribute an amount equivalent to the net proceeds of the sale to support qualifying green projects, as it did with its first bond issuance. Projects in renewable energy, energy efficiency, sustainable water management, pollution prevention and control, green buildings, and clean transportation are examples of this.
