The Saudi National Religion Center said today, Wednesday, that the Kingdom raised about 2.36 billion dollars (2.25 billion euros) from selling green bonds in euros for 7 years and traditional bonds for 12 years.
This version is the first version of the Kingdom’s government to include a green slice.
Division of bonds
The center stated that the version was divided into green bonds worth 1.5 billion euros (1.57 billion dollars) and traditional bonds worth 750 million euros (787 million dollars), and attracted subscription requests of about 10 billion euros (10.5 billion dollars), which reflects a strong appetite from investors.
According to the IFR service for fixed income tools news, the seven -year bonds were priced at 115 basis points above the average rate of fixed and changing interest exchanges, and at 145 basis points above the same standard for bonds for 12 years, and pricing from the guiding price with support from the strength of demand .
The green bonds are the first to be issued by the Kingdom, and come at a time when the largest oil exporting country in the world seeks to diversify its economy and reduce its dependence on oil.
Saudi Arabia expects a financial deficit of $ 27 billion for the year 2025 while continuing strategic spending on projects related to the 2030 vision, which is the ambitious Kingdom’s plan to reform and diversify the economy.
Achieving sustainability
The Religious Administration Center stated that the issuance of the green segment comes “within one of the initiatives of the financial sector development program aimed at supporting the ambitious directions of the Kingdom towards achieving sustainability and reaching the zero neutrality, and highlighting the Kingdom’s efforts in these areas for investors and participants in the market, to embody an important step towards achieving the target Saudi Vision 2030 “.
The green financing framework in the Kingdom seeks to use the funds collected from the issuance of green bonds to finance the transformation towards clean energy, diversify the economy, protect the natural environment and other things.
Last month, Saudi Arabia collected 12 billion dollars in global debt markets from selling bonds to 3 segments, and attracted a strong request from investors, and it is expected that these funds will help cover the budget deficit and pay debts.
