Saudi Arabia to Issue €1.5 Billion Green Euro Bond
Saudi Arabia is set to debut a €1.5 billion green euro bond, attracting strong investor interest with €7.25 billion in bid offers. The proceeds will support the nation's ambitious economic transformation plan.
Key Features:
* Seven-year green note pricing at 115 basis points over benchmark
* 40-basis-point tightening from initial levels
* €750 million 12-year conventional bond expected to price at 145 basis points over mid-swaps
Importance:
* First sovereign green bond issuance from the Middle East and North Africa region
* Largest green bond offering from a sovereign issuer in Europe since 2021
* Reflects Saudi Arabia's commitment to diversifying its economy and achieving net-zero emissions by 2060
Investor Appeal:
* Strong demand for green debt in the market
* Attractive spreads ofrec decent returns
* Proceeds earmarked for sustainable projects aligned with Saudi Arabia's Vision 2030
Other Considerations:
* Saudi Arabia has been actively issuing bonds to fund its budget deficit
* The government has mandated HSBC, JPMorgan, and Societe Generale as lead banks for the offering
* Saudi Arabia's last euro debt issuance was in 2021, raising €1.5 billion