Saudi Arabia’s sovereign fund lays out plan for green financing

Author of the article: DUBAI — Saudi Arabia’s sovereign wealth fund (PIF) laid out plans on Monday for raising green debt as the world’s top oil exporter strives to reach net zero carbon emissions by 2060. The PIF is at the center of Saudi Arabia’s ambitious plans to create new sectors and diversify revenues away…
Saudi Arabia’s sovereign fund lays out plan for green financing

Author of the article:

DUBAI — Saudi Arabia’s sovereign wealth fund (PIF) laid out plans on Monday for raising green debt as the world’s top oil exporter strives to reach net zero carbon emissions by 2060.

The PIF is at the center of Saudi Arabia’s ambitious plans to create new sectors and diversify revenues away from hydrocarbons.

PIF published its green finance framework that will allow it tap world markets to issue debt linked to environmentally friendly goals, including through the sale of green bonds.

PIF Governor Yasir al-Rumayyan said in September the fund would issue green debt “soon,” becoming the first sovereign wealth fund in the world to do so.

Net proceeds from such debt sales will go towards eligible projects, which include renewable energy, energy efficiency sustainable water management, clean transport, green buildings and pollution prevention.

PIF will publish allocation and impact reports annually when such debt is outstanding.

Fitch Ratings assigned PIF an ‘A’ credit rating earlier this month, in line with Saudi Arabi’s sovereign rating given its strong support for the fund and PIF’s central role in driving the kingdom’s diversification agenda.

The framework is in compliance with the International Capital Market Association’s Green Bond Principles 2021 and Loan Market Association’s Green Loan Principles 2021.

PIF said it may also choose to seek certification for its green bond issuance from CBI, a London-based non-profit which promotes investment in the low-carbon economy, and the Climate Bonds Standard.

“In such event, and before any bond issuance, PIF will engage a CBI-approved verifier to…report on the conformance of Green Financing Instruments with pre and post-issuance requirements of the Climate Bond Standard,” PIF said.

The Saudi government is also preparing its own green debt sales. Finance Minister Mohammed al-Jadaan said in October that advisers had been appointed but the format had not yet been decided.

(Reporting by Yousef Saba; editing by John Stonestreet, Kirsten Donovan)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
British finance minister Sunak requests review of his financial declarations
Read More

British finance minister Sunak requests review of his financial declarations

Author of the article: Britain’s finance minister Rishi Sunak said on Sunday he had asked Prime Minister Boris Johnson for a review to determine whether he had stuck to the rules on ministerial declarations following criticism over his family’s financial arrangements. Sunak said he had written to the prime minister asking him to refer Sunak’s…
With Taiwan drills, Xi tries to salvage Pelosi crisis
Read More

With Taiwan drills, Xi tries to salvage Pelosi crisis

Author of the article: BEIJING — Chinese President Xi Jinping may not have been able to stop Nancy Pelosi’s visit to Taiwan, but he ordered his country’s military to rehearse a much more aggressive step: a blockade crucial to taking the island by force, security experts say. China’s military planners have long discussed a blockade…
HEXO Provides Update on ‘The Path Forward’; Maintains #1 Position in Canada and Announces Redecan Product and Market Expansion
Read More

HEXO Provides Update on ‘The Path Forward’; Maintains #1 Position in Canada and Announces Redecan Product and Market Expansion

Author of the article: This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated May 11, 2021 to its short form base shelf prospectus dated May 7, 2021 and amended and restated on May 25, 2021. GATINEAU, Québec., Jan. 25, 2022 (GLOBE NEWSWIRE) — HEXO Corp. (TSX: HEXO;…