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Small trees on a pile of gold coins and a natural green background. Money saving ideas. Image used for illustrative purpose. Getty Images
Saudi Arabia has mandated banks for a potential Euro-denominated dual tranche Reg S / Rule 144A offering, consisting of a seven-year inaugural green bond and a 12-year conventional bond.
The kingdom has stated an amount equal to the net proceeds from the issuance of the green tranche will be used to finance eligible green projects in accordance with the issuer’s Green Financing Framework.
HSBC, JP Morgan and Société Générale have been appointed as Global Coordinators and Joint Active Bookrunners for the offering. HSBC and JP Morgan are also acting as Joint Green Structuring Agents, while Crédit Agricole CIB and SNB Capital have been mandated as Joint Passive Bookrunners.
Saudi Arabia has been rated Aa3 (stable) by Moody’s and A+ (stable) by Fitch.
In January, the kingdom raised $12 billion in a three-part bond sale with a total order book that reached around $37 billion.
Saudi sold $5 billion, $3 billion and $4 billion in tenors of three, six and 10 years, respectively, with proceeds expected to cover its budget deficit and pay down debt.
(Writing by Bindu Rai, editing by Seban Scaria)
