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Alternative or renewable energy financing program, financial concept : Green eco-friendly or sustainable energy symbols atop five coin stacks e.g a light bulb, a rechargeable battery, solar cell panel. Image used for illustrative purpose. Getty Images
Final pricing for Saudi Arabia’s seven-year euro bonds tightened as investors piled in on the first-ever green offering from the sovereign.
The EUR1.5 billion seven-year note was priced at mid-swaps plus 115 basis points (bps), 40bps tighter than initial price thoughts (IPTs) as books came in excess of EUR7.2 billion, excluding joint lead manager (JLM) interest.
The EUR750 million 12-year conventional bond tranche, which saw books topping EUR2.7 billion (excluding JLM interest), was priced at MS + 145bps, 30 bps tighter.
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.
The Public Investment Fund (PIF) issued $8.5 billion in green bonds in 2022 and 2023, becoming the first sovereign wealth fund to issue green debt
(Writing by Brinda Darasha; editing by Daniel Luiz)
