Saudi Arabia’s Public Investment Fund (PIF) is stepping into the European green bond market with its inaugural dual-tranche issuance, signaling a growing push into sustainable finance.
The three-year tranche is initially pegged at a Mid-Swap rate of +90-95 basis points, maturing on October 14, 2028. The seven-year tranche comes at +125 basis points, with a 2032 maturity. Both are expected to carry Moody’s Aa3 and Fitch A+ ratings, with fixed annual coupons. Settlement is set for October 14.
Crédit Agricole CIB, JP Morgan, and Societe Generale are coordinating the launch, while Barclays, BBVA, BNP Paribas, HSBC, IMI Intesa-Sanpaolo, and ING take on active bookrunning roles. Barclays also serves as Green Structuring Advisor.
The issuance falls under GACI First Investment Company’s Euro Medium Term Note Programme and is guaranteed by PIF, the nearly $1 trillion sovereign wealth fund. The bonds will list on the London Stock Exchange’s International Securities Market, with proceeds earmarked for eligible green projects as outlined in PIF’s Green Finance Framework (August 2024).
This move follows PIF’s $2 billion 10-year bond issued last month, which drew over $7.5 billion in investor orders, highlighting strong appetite for the fund’s debt in global markets.
