حفلة 2024

Saudi Arabia’s PIF collects $5.5 billion with second green bond sale

Saudi sovereign Public Investment Fund (PIF) has secured $5.5 billion through its second sale of green bonds in four months, which the demands had exceeded $32.5 billion, according to one the banks running the deal said on Tuesday.

PIF supposed was supposed to collect $1.75 billion in seven-year papers at 115 basis points (bps) over U.S. Treasury Bond (UST) bills.

The bank added that PIF is set to raise $2 billion in a 12-year tranche at 145 bps over UST, and $1.75 billion 30-year bonds at a standard price.

PIF raised tens of billions, including a 17-billion-dollar loan in November, to fund a huge investment program to create new jobs and industries. These include building a futuristic city in the desert known as NEOM.

One of the leading banks said that the 7-year bond orders have exceeded $15.2 billion, more than $9.8 billion for 12 years, and over $7.5 billion for 30-year bonds.

The initial price was around 145 bps over 3.5 percent for 7-year bonds, around 175 bps for 12-year bonds, and 215 basis points, more than 3 percent, for the 30-year tranche.

Goldman Sachs (GS.N), JP Morgan (JPM.N), and Standard Chartered Bank were hired as international coordinators to sell loans that are expected to face pricing, the bank’s document showed.

The deal also includes Bank of A securities, BNP Paribas, City Group, First Bank of Abu Dhabi, HSBC, and Morgan Stanley as active subscription managers.

In addition to Crédit Agricole, GIP Capital, ICBC International Securities, Mizuho Bank, SMBC Niko, and Société Générale as inactive subscription managers.

The Public Investment Fund, the runs assets at a value of more than 600 billion dollars, raised 3 billion dollars in October by selling its bonds for the first time, which considers as an econ-friendly production.

The wealth fund expects to invest more than $10 billion by 2026 in eligible green projects, including renewable energy, clean transport and sustainable water management, an investor presentation for the bonds sold in October showed.

 

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