Saudi Arabia’s wealth fund hires banks for debut green bonds

DUBAI, Sept 27 (Reuters) – Saudi Arabia’s sovereign wealth fund, the Public Funding Fund (PIF), has employed banks together with Citi and JPMorgan (JPM.N) to rearrange a debut issuance of multi-tranche U.S. dollar-denominated inexperienced bonds, a doc confirmed on Tuesday.

Sources instructed Reuters earlier this month that PIF would subject the long-planned inexperienced bonds this month or in October. learn extra

BNP Paribas (BNPP.PA), Citi, Deutsche Financial institution (DBKGn.DE), Goldman Sachs and JPMorgan, mandated as joint international coordinators and lively bookrunners, will organise investor calls beginning on Tuesday.

A debut issuance in tranches of 5, 10 and doubtlessly a longer-dated tenor will comply with, topic to market circumstances. The issuance can be beneath GACI First Funding Firm and assured by PIF.

PIF has $608 billion in belongings beneath administration, in keeping with an investor presentation seen by Reuters, not together with the February switch of a 4% stake in oil large Aramco to the fund.

“PIF is appearing as the important thing automobile to attain KSA (the Kingdom of Saudi Arabia) inexperienced aspirations,” the presentation stated, referring to an bold financial reform agenda to wean the economic system off oil.

The fund, which goals to develop its belongings beneath administration to greater than $1 trillion by 2025, expects to take a position over $10 billion by 2026 in eligible inexperienced initiatives, together with renewable power, clear transport and sustainable water administration, the presentation stated.

This consists of $4.4 billion for NEOM, a futuristic metropolis being constructed within the desert. Saudi Crown Prince Mohammed bin Salman stated in July its first part would price 1.2 trillion riyals ($318.98 billion), and that it could be publicly listed in 2024. learn extra

PIF had $21 billion in gross debt on the finish of June and $45 billion in money and money equivalents. It additionally had $86 billion in treasury belongings and $5 billion undrawn from a revolving credit score facility, from which $10 billion was withdrawn in June, the presentation confirmed.

Credit score Agricole (CAGR.PA), First Abu Dhabi Financial institution (FAB.AD), HSBC (HSBA.L), Mizuho (8411.T), SMBC Nikko (8316.T), SNB Capital (1180.SE), Societe Generale (SOGN.PA) and Commonplace Chartered (STAN.L) are additionally lively bookrunners on the inexperienced bonds. learn extra

($1 = 3.7620 riyals)

Reporting by Yousef Saba; Modifying by Louise Heavens and Jan Harvey

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