PIF Raises €1.65bn in First Euro Green Bond

The Public Investment Fund has completed its first euro-denominated green bond, raising a total of €1.65 billion in October 2025 to help finance environmentally focused projects across Saudi Arabia.

The issuance was structured in two tranches. The first, worth €800 million (about SAR 3.5 billion), consists of three-year notes carrying an annual coupon of 2.75% and a yield of roughly 2.807%, priced at mid-swap plus 58 basis points after tightening from initial guidance. The second tranche, worth €850 million (about SAR 3.7 billion), covers seven-year notes with an annual coupon of 3.375% and a yield of about 3.422%, priced at mid-swap plus 90 basis points.

Investor demand was strong, with combined orders exceeding €8.7 billion — around €3.1 billion for the three-year notes and €3.8 billion for the seven-year notes, excluding lead-manager interest. Participation came mainly from global institutional investors based in Europe, the Middle East and Asia, reflecting continued international appetite for Saudi sovereign-linked green debt.

The bonds are listed on the London Stock Exchange's International Securities Market as part of the fund's international bond program. The issuance falls under the fund's Green Finance Framework, with proceeds earmarked for eligible green projects inside the Kingdom, including renewable energy, energy efficiency, sustainable water management, waste management and recycling, and related utilities and infrastructure.

Why it matters

The offering, carrying high-grade credit ratings of around Aa3 and A+ at the fund level, marks the fund's first euro-denominated green bond and adds to an earlier program of US-dollar green bonds and sukuk. The proceeds support the Kingdom's Vision 2030 goals and its 2060 net-zero target, channelling international capital into clean energy and sustainability projects that residents across the country stand to benefit from over the coming years.

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