Saudi Arabia’s PIF selling three-tranche dollar green bonds

Saudi Arabia’s PIF selling three-tranche dollar green bonds

Goldman Sachs, JPMorgan and Standard Chartered Bank were hired as global coordinators for the debt sale expected to price later on Tuesday

PIF is the chosen vehicle of Crown Prince Mohammed bin Salman to drive an economic agenda aimed at cutting reliance on oil.

By Reuters Published: Tue 7 Feb 2023, 5:14 PM

Saudi Arabia’s sovereign Public Investment Fund (PIF) is selling US dollar-denominated green bonds in tranches of seven, 12 and 30 years, a bank document showed on Tuesday.

Initial price guidance was around 145 basis points (bps) over 3.5 per cent US Treasuries (UST) for the seven-year tranche, around 175bps over 4.125 per cent UST for the 12-year paper and around 215bps over three per cent UST for the 30-year bonds, the document showed.

PIF is the chosen vehicle of Crown Prince Mohammed bin Salman to drive an economic agenda aimed at cutting reliance on oil.

Goldman Sachs, JPMorgan and Standard Chartered Bank were hired as global coordinators for the debt sale expected to price later on Tuesday. Each tranche will be of benchmark size, which typically means at least $500 million.

Also on the deal are BofA Securities, BNP Paribas, Citi, First Abu Dhabi Bank, HSBC and Morgan Stanley as active bookrunners, as well