Intesa Sanpaolo, through its IMI Corporate & Investment Banking Division, acted as bookrunner for the debut USD 3Bn green bond offering from the Public Investment Fund (PIF), the sovereign wealth fund of the Kingdom of Saudi Arabia. PIF successfully priced USD 1.25Bn, USD 1.25Bn and USD 500M worth of 5-year, 10-year and 100-year notes respectively.
The issuance was more than 8 times oversubscribed with an orderbook in excess of USD 24Bn. The coupon for the 5-year tranche was set at 5.000% (T+125bp), the 10-year tranche at 5.250% (T+165bp) and the 100-year tranche at 5.375% (6.70%/T+292.6bp).
PIF has been mandated to develop 70% of the Saudi Arabia’s renewable energy capacity outlined by Saudi Vision 2030. In line with PIF’s green financing framework (established in February 2022), the proceeds from the bond will be applied to green investments and will include eligible green projects in renewable energy, energy efficiency, sustainable water management, pollution prevention and control, green buildings and clean transportation, as per the ICMA Green Bond Principles 2021. The framework received an SPO from DNV, which confirmed its alignment with the Green Bond Principles.