Saudi Arabia's PIF selling three-tranche dollar green bonds (updated)

GIB Capital

07/02/2023 10:52

(Changes sourcing to bank document, updates with background)
    By Yousef Saba
       DUBAI, Feb 7 (Reuters) - Saudi Arabia's sovereign Public
Investment Fund (PIF) is selling U.S. dollar-denominated green
bonds in tranches of seven, 12 and 30 years, a bank document
showed on Tuesday.
    Initial price guidance was around 145 basis points (bps)
over 3.5% U.S. Treasuries (UST) for the seven-year tranche,
around 175 bps over 4.125% UST for the 12-year paper and around
215 bps over 3% UST for the 30-year bonds, the document showed.
    PIF is the chosen vehicle of Crown Prince Mohammed bin
Salman, the kingdom's de facto ruler, to drive an economic
agenda aimed at cutting reliance on oil.
    Goldman Sachs  GS.N , JPMorgan  JPM.N  and Standard
Chartered Bank  STAN.L  were hired as global coordinators for
the debt sale expected to price later on Tuesday. Each tranche
will be of benchmark size, which typically means at least $500
million.
    Also on the deal are BofA Securities, BNP Paribas, Citi,
First Abu Dhabi Bank, HSBC and Morgan Stanley as active
bookrunners, as well as Credit Agricole, GIB Capital, ICBC
International Securities, Mizuho, SMBC Nikko and Societe
Generale as passive bookrunners.
    PIF, which manages more than $600 billion in assets, raised
$3 billion in October with its debut bond sale, which was also a
green issue. That sale comprised tranches of five, 10 and 100
years - the first green bond of that tenor.
    PIF expects to invest more than $10 billion by 2026 in
eligible green projects, including renewable energy, clean
transport and sustainable water management, an investor
presentation for the bonds sold in October showed.
    By comparison, the fund has said it would invest about $40
billion domestically each year through 2025.
 (Reporting by Yousef Saba  Editing by Louise Heavens and Mark
Potter)
 ((Yousef.Saba@thomsonreuters.com; +971562166204; https://twitter.com/YousefSaba))