Riyadh, Saudi Arabia—The Public Investment Fund of Saudi Arabia is looking to tap international debt markets for a debut green bonds issue.
According to media reports, PIF has set up a financing framework that would allow it to raise green bonds.
In February, PIF announced a green finance framework that showed net proceeds from a debt sale would go toward eligible projects, including in renewable energy, clean transport and green buildings.
PIF has been monitoring the market for months to find a window to issue amid enduring volatility that has rattled markets for much of this year as central banks use aggressive tightening to try to tame decades-high inflation.
That window could come as soon as next week, depending on market conditions, or possibly in October, two of the sources said.
According to experts, the deal is expected to raise billions of dollars.
PIF started raising bank debt in 2018 with an $11 billion facility, followed in 2019 by a $10 billion loan which it then repaid in 2020.
In March last year, the wealth fund raised $15 billion from 17 banks comprising most of the core banking group as well as Credit Suisse, Deutsche Bank, First Abu Dhabi Bank, Goldman Sachs, Intesa Sanpaolo , Morgan Stanley, Natixis and Societe Generale .