© Reuters. Participants in the Saudi Green Initiative Forum in Riyadh. Photo from Reuters archive.
DUBAI (Reuters) – Saudi Arabia’s Public Investment Fund, the kingdom’s sovereign wealth fund, is expected to raise between $2.5 billion and $2.75 billion in a bond issuance that will make it the first sovereign wealth fund to issue green bonds, a document from a bank showed on Wednesday. .
The document added that the fund is expected to sell between $1 billion and $1.25 billion at a margin of about 125 basis points over a five-year bond. It is also expected to sell one billion dollars in ten-year bonds with a margin of about 165 basis points on US Treasuries and 500 million dollars at a rate of 6.7 percent for the 100-year tranche.
The document also showed that demand exceeded $21.8 billion for the three tranches, and the five-year bonds attracted more than $10.3 billion in offers, the ten-year tranche of $8.4 billion and the 100-year tranche attracted more than $3.1 billion.
(Press coverage by Youssef Saba – Prepared by Salma Najm for the Arabic Bulletin – Edited by Mustafa Saleh)