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Saudi Arabia's PIF Wealth Fund plans a dual-tranche Green Bond Sale

A source told us that Saudi Arabia's sovereign wealth fund had hired banks to handle the sale of its euro-denominated first green bond. Documents from one of the banks involved in the arrangement were also seen by the reporter.

The planned bond sales are part of a larger effort to diversify financing sources and support the Kingdom's plans for economic transformation while also aiming at net-zero emissions by 2060.

Documents show that the Public Investment Fund, which oversees assets worth nearly $1 trillion, has instructed Credit Agricole CIB and JP Morgan to organize investor calls beginning Monday.

PIF did respond immediately to a comment request.

Green bonds are securities which raise money specifically for projects that have environmental or sustainability benefits.

PIF entered the green debt market in 2022. Since then, it has issued several U.S. Dollar-denominated Bonds under its Green Finance Framework.

The framework allows for proceeds to be allocated to projects that promote renewable energy, clean transportation and sustainable infrastructure, including those undertaken in Saudi Arabia by PIF subsidiary companies aligned with Vision 2030.

Crown Prince Mohammed Bin Salman announced the 2060 goal of net-zero in 2021 as Saudi Arabia intensified efforts to attract green investments and expand sustainable finance. Reporting by Md. Manzer Hussain, Editing by Kirby Donovan

(source: Reuters)