Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), has hired banks including Citi and JPMorgan to arrange a debut issuance of multi-tranche US dollar-denominated green bonds.
PIF in February announced a green finance framework that showed net proceeds from a debt sale would go towards eligible projects, including renewable energy, clean transport and green buildings.
BNP Paribas, Citi, Deutsche Bank, Goldman Sachs and JPMorgan, mandated as joint global coordinators and active book-runners, will organise investor calls starting on Tuesday. A debut issuance in tranches of five, 10 and potentially a longer-dated tenor will follow, subject to market conditions. The issuance will be under GACI First Investment Company and guaranteed by PIF.
Why it matters
Saudi Arabia’s government and sovereign wealth fund are preparing to issue green bonds in a bid to drum up investment for renewable energy and other sustainable projects. “PIF is acting as the key vehicle to achieve the Kingdoms green aspirations,” a presentation said, referring to an ambitious economic reform agenda to wean the economy off oil. The fund, which aims to grow its assets under management to more than $1 trillion by 2025, expects to invest over $10 billion by 2026 in eligible green projects, including renewable energy, clean transport and sustainable water management.