RIYADH: Saudi Arabia’s sovereign wealth fund, known as the Public Investment Fund, has been assigned an ‘A’ rating with a stable outlook, according to Fitch Ratings.

Fitch anticipates the $500 billion Saudi fund to tap global debt markets, “while continuing to receive stable flows of capital funding from its government during the growth stage of its operations.”

The rating, which entails low default risk expectations, follows a series of efforts by the PIF to drive Saudi Arabia’s ambitious goals in line with Vision 2030.

As a key investment vehicle, PIF is expected to play a major role in boosting investments in green hydrogen and sustainability-based initiatives.

The fund will be the first sovereign wealth fund to issue green bonds in line with environmental, social, and governance standards, Arab News earlier reported citing PIF governor, Yasir Al-Rumayyan.

The ESG framework will be managed in partnership with BlackRock, Al-Rumayyan said last September.

Through its portfolio of companies, PIF has been given the mandate to develop nearly 70 percent of renewable projects in Saudi Arabia, the organization’s chief earlier said.

Chaired by Crown Prince Mohammed bin Salman, the fund’s efforts come as part of a wider move to reduce the Kingdom’s heavy reliance on oil.

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