Saudi PIF Hires Banks for Potential Green Bond Issuance
Posted on 09/27/2022
Saudi Arabia’s Public Investment Fund (PIF) hired banks including BNP Paribas SA, Citigroup Inc., Deutsche Bank AG, Goldman Sachs Group Inc. and JPMorgan Chase & Co. to arrange a debut issuance of multi-tranche U.S. dollar-denominated green bonds. Ratings agency Moody’s is projecting US$ 1 trillion in sustainable debt issuance for 2022. Saudi Arabia is one of the world’s largest oil exporters. However, Saudi Arabia announced plans to reach net zero emissions by 2060, a decade later than many large economies. The PIF has been mandated to develop 70% of the kingdom’s renewable energy program and expects to make more than $10 billion of investment in green projects by 2026, according to the prospectus.
Both companies and governments are looking to green bonds. For example, Coca-Cola Hellenic Bottling Company issued its first green bond, raising €500 million in support of its environmental sustainability projects.