Saudi Arabia’s First Green Eurobond Draws Strong Investor Demand
Proceeds from the green bond will be directed toward eligible projects under the issuer’s Green Financing Framework.
Saudi Arabia’s first green eurobond issuance attracted investor demand, with order books exceeding EUR 7.2 billion, excluding joint lead manager interest. The EUR 1.5 billion seven-year green bond was priced at mid-swaps +115 basis points, narrowing by 40 basis points from initial pricing expectations.
In addition to the green bond, a EUR 750 million 12-year conventional bond tranche was priced at mid-swaps +145 basis points, tightening by 30 basis points. Demand for this tranche was also strong, with order books surpassing EUR 2.7 billion, excluding joint lead manager interest.
Proceeds from the green bond will be directed toward eligible projects under the issuer’s Green Financing Framework. Saudi Arabia’s Public Investment Fund had previously issued USD 8.5 billion in green bonds across 2022 and 2023, becoming the first sovereign wealth fund to enter the green debt market.
