RIYADH: As part of its Global Medium-Term Note Issuance Program, Saudi Arabia has raised €2.25 billion ($2.36 billion) by selling euro-denominated bonds, including its first green tranche. The issue, which was divided into two tranches, saw an oversubscription of four times the issuance size and attracted orders totalling almost €10 billion, according to a press release from the Kingdom’s National Debt Management Centre. The second tranche, costing €750 million, matures in 12 years, while the green tranche, worth €1.5 billion, has a seven-year maturity.
In keeping with its larger sustainability plan under the Financial Sector Development Program, this is the first time Saudi Arabia has issued a green euro bond. According to NDMC, the issue shows the Kingdom’s dedication to sustainable financing and is a step towards reaching net-zero emissions. “It also showcases the Kingdom’s endeavours to investors and market players, signifying a noteworthy advancement in achieving the goals of Saudi Vision 2030,” the statement continued.
Saudi Arabia is thinking about issuing green bonds in foreign markets in 2025, according to remarks made earlier this month by Muhannad Mufti, chief of portfolio management at NDMC, during the Capital Markets Forum. Due to growing interest rates, the Kingdom’s debt market has expanded dramatically in recent years, attracting investor interest in debt securities.
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