PIF announces successful completion of USD 3 billion inaugural bond

Press Releases
06 October 2022 Riyadh, KSA
USD 3 billion inaugural bond
  • First sovereign wealth fund to issue a green bond
  • First-ever century green bond, establishing full PIF green yield curve
  • Inaugural bond issue of USD 3 billion to finance or refinance PIF’s green investments, in accordance with its Green Finance Framework
  • Issuance was 8 times oversubscribed with books exceeding USD 24 billion and interest from a wide range of global investors, showing PIF’s outstanding credit strength
The Public Investment Fund (PIF) today completed its first-ever bond issuance, a full green bond, raising USD 3 billion to finance or refinance PIF’s green investments, in accordance with its Green Finance Framework. 

PIF green investments include eligible green projects in renewable energy, energy efficiency, sustainable water management, pollution prevention and control, green buildings and clean transportation.
The bond was more than 8 times oversubscribed, with orders exceeding USD 24 billion. It was issued in 3  tranches, comprising:

USD 1.25billion (SAR 4.69 billion), 5 year, 5% coupon
USD 1.25billion (SAR 4.69 billion), 10 year, 5.250% coupon
USD 500million (SAR1.88 billion), 100 year, 5.375% coupon

The strong demand by international investors for PIF’s first issuance reflects confidence in PIF’s role as an integral pillar of the Saudi economy, and PIF's position as one of the largest and most impactful sovereign wealth funds.

This green bond issuance follows the publication of PIF’s Green Finance Framework in February 2022.  The Green Finance Framework was created in line with best market practice and is fully compliant with the International Capital Market Association’s Green Bond Principles 2021 and the Loan Market Association’s Green Loan Principles 2021. 

The issuance is a continuation of PIF initiatives to support Saudi Arabia’s green agenda and follows previous announcements by PIF such as the launch of the MENA Voluntary Carbon Market and the various renewable projects PIF is spearheading as part of the its commitment to develop 70% of Saudi Arabia’s renewable energy capacity outlined by Saudi Vision 2030.

PIF’s green bond investor roadshow was carbon neutral thanks to PIF’s collaboration with the MENA Voluntary Carbon Market. 

Fahad AlSaif, Head of PIF’s Global Capital Financing Division, said:

“This inaugural bond issuance is a historic milestone for PIF, marking the establishment of its international capital markets program - one of the PIF’s key objectives. It will also allow PIF to further diversify its sources of debt funding thereby helping to drive impactful investment in Saudi Arabia and internationally.

The strong investor support for the issuance is a testament to PIF’s strong financial profile, world-class governance, exceptional green projects and the diversity of its business and portfolio. It also reflects PIF’s leading role in transforming Saudi Arabia’s economy and the broad range of green and sustainable investment opportunities that this transformation provides.”