Saudi Arabia has pioneered the Middle East’s first euro-denominated green bond, marking a landmark step to fund its ambitious economic transformation and sustainability goals. This seven-year green note, marketed at approximately 155 basis points over mid-swaps aligns with the kingdom’s commitment to achieving net-zero emissions by 2060.
Building on this momentum, the Kingdom is simultaneously issuing a 12-year conventional bond at 175 basis points over mid-swaps, according to Bloomberg, reinforcing its diversified financing approach. The green bond’s proceeds will directly support projects under the 2030 sustainability agenda, including planting 10 billion trees and conserving 30% of Saudi land and marine ecosystems.
Leading Regional Sustainability Efforts
Saudi Arabia’s euro green bond distinguishes it as the first sovereign in the Middle East and North Africa (MENA) to issue such debt in euros, according to Bloomberg data. This follows earlier green debt initiatives by Qatar, Israel, and Egypt, but underscores the Kingdom’s proactive role in advancing regional sustainability leadership.
Central to this vision, the Public Investment Fund (PIF) has spearheaded green debt issuance since 2022, mirroring the government’s focus on reducing oil dependency. The bond sale complements recent $12 billion note issuances, demonstrating fiscal resilience as the Kingdom targets long-term economic growth.
Global Partners Strengthen Financial Infrastructure
HSBC, JPMorgan, and Societe Generale are leading the bond’s distribution, reflecting international confidence in Saudi Arabia’s strategic financial plans. This offering reinforces the kingdom’s position as a trailblazer in sustainability-driven investment, aligning with Crown Prince Mohammed bin Salman’s vision for a prosperous, diversified future.
