• Public Investment Fund (PIF) will admit a $3 billion triple-tranche green bond on the London Stock Exchange’s International Securities Market and will be displayed on the Sustainable Bond Market
  • More than 8 times oversubscribed, the issuance will finance or refinance eligible green projects in line with PIF’s Green Finance Framework which is aligned to ICMA Green Bond Principles 2021
  • SparkLive Roadshow, the London Stock Exchange’s digital platform for livestreaming, was used to conduct extensive investor marketing during the transaction
  • The London Stock Exchange is a leading global hub for sustainable finance, with over £120 billion raised on the Sustainable Bond Market

The London Stock Exchange welcomes the Public Investment Fund’s (PIF) inaugural green bond, the first to be issued by a sovereign wealth fund on the International Securities Market.

It is also PIF’s first bond issuance, following a series of successful loan market transactions. The green bond listing, including a 100-year tranche, is the first to be issued by a sovereign wealth fund.The $3 billion issuance, issued in 3 tranches to be repaid in 2027, 2032 and 2122, will be displayed on the London Stock Exchange’s Sustainable Bond Market and was over 8 times oversubscribed by investors.

The listing from Saudi Arabia’s sovereign wealth fund highlights PIF’s commitment to supporting the country’s sustainability agenda by diversifying its economy and reaching Net Zero emissions by 2060. The 100-year tranche in particular illustrates investors’ confidence in PIF’s long-term mission and its support of the green agenda.

The green bond meets the International Capital Market Association (“ICMA”) Green Bond Principles 2021, which set out requirements covering use of proceeds; project evaluation and selection, management of proceeds; and reporting. As part of PIF’s role in supporting Saudi Arabia’s green agenda, it has established a Green Finance Framework, which outlines the projects eligible for green financing in line with international standards.

The proceeds of the issuance will be allocated to finance or refinance eligible green projects  including investment in sustainable water management, renewable energy, pollution control, green buildings, and clean transportation. ICMA’s criteria includes the requirement to report on use of proceeds on an annual basis.

Global green bond issuance reached $479 billion from over 1000 issues in 2021, a 96% growth rate compared with 2020 and a record high, according to data from Refinitiv. This was up from just $63 billion in 2016.

As part of the transaction, PIF utilised SparkLive Roadshow, the London Stock Exchange’s digital solution for delivering hosted roadshows for the capital markets community. This enabled extensive engagement with global investors to view investor presentations and supporting documentation through SparkLive. SparkLive offers a seamless virtual events and communications solution that is used for on-demand access to corporate earnings calls, AGMs and capital markets and investor roadshows.

Julia Hoggett, CEO, the London Stock Exchange plc, said: “We congratulate PIF on becoming the first sovereign wealth fund to list a green bond. Green bonds are critical tools that enable issuers to achieve key sustainability objectives and the issuance reflects PIF’s commitment to contribute to Saudi Arabia’s green agenda. Climate change is the most urgent challenge of our lifetimes and, as the world’s most international financial centre, the London Stock Exchange is at the forefront of enabling capital flows to help fund the just transition to net zero.”

Andrew Griffith, Financial Secretary to the Treasury, UK Government said:

‘’I am delighted that the Public Investment Fund have chosen to list their inaugural green bond in London. This is a sign of confidence in the UK as a global leader in sustainable finance. This launch of the first green bond by a sovereign wealth fund also highlights how the UK and its partners can work constructively on the sustainable finance agenda.”

LSEG is well placed at the heart of global capital markets to be a strategic enabler of sustainable economic growth. It plays an important role in accelerating the transition to net zero and supporting the growth of the green economy. From comprehensive sustainable investment data and analytics to multi asset indices for investors and access to international capital markets for green finance for a broad spectrum of issuers, LSEG provides solutions designed around the needs of the entire sustainable finance ecosystem.

A leading global hub for sustainable finance, the London Stock Exchange has supported investors and issuers in the transition to a low-carbon and sustainable economy for over a decade. Its Sustainable Bond Market (SBM) is home to more than 300 green, social, and sustainability bonds, raising a combined £120 billion. In equity markets, more than 100 issuers have been recognised by London Stock Exchange’s Green Economy Mark, which identifies London-listed companies and funds that derive more than 50% of their revenues from green products and services.

For further information
LSEG Press Office
Nandeep Roopray (EMEA)
Oliver Mann (EMEA)
Tarek Fleihan (MEA)
newsroom@lseg.com
www.lseg.com

About LSEG

LSEG (London Stock Exchange Group) is more than a diversified global financial markets infrastructure and data business. We are dedicated, open-access partners with a commitment to excellence in delivering the services our customers expect from us. With extensive experience, deep knowledge and worldwide presence across financial markets, we enable businesses and economies around the world to fund innovation, manage risk and create jobs. It’s how we’ve contributed to supporting the financial stability and growth of communities and economies globally for more than 300 years.

Data & Analytics

Our acquisition of Refinitiv means we can provide the breadth and depth of financial data and best-in-class analytics that customers expect – driving innovation and growth across global markets. And our high-performance solutions – from trading, to market surveillance, to wealth solutions and more – help to enhance the performance of our customers. FTSE Russell is a leading global provider of financial indexing, benchmarking and analytic services with more than $16 trillion benchmarked to our indices – and offers an extensive range of data services and research. The combination of Refinitiv and FTSE Russell provides LSEG with leading capabilities in data, analytics, indices and benchmarks

Capital Markets

We offer our customers extensive access to capital markets and liquidity across multiple asset classes. We operate a broad range of international equity, fixed income, exchange-traded funds/exchange traded products and foreign exchange markets. Our Group is home to several capital formation and execution venues: London Stock Exchange, AIM, Turquoise, FXall and Tradeweb (through a majority ownership interest).

Post Trade

We support our customers’ clearing and reporting obligations, providing risk, balance sheet and financial resource management solutions, whilst working with our other divisions to extend this support across the value chain.

A leading global clearing house with a strong presence across multiple asset classes, LCH helps financial institutions all over the world use their capital efficiently and manage counterparty risk. We work closely with sell-side clearing members and buy-side clients in conjunction with trading venues globally.

UnaVista, a regulated platform that helps customers meet their reporting compliance obligations and reduce operational and regulatory risk through reporting, reference data and analytics solutions, further complements our Post Trade offering.

Through a comprehensive suite of trusted financial market infrastructure services – and our open-access model – we provide the flexibility, stability and trust that enable our customers to pursue their ambitions with confidence and clarity.

LSEG is headquartered in the United Kingdom, with significant operations in 70 countries across EMEA, North America, Latin America and Asia Pacific. We employ 25,000 people globally, more than half located in Asia Pacific. LSEG’s ticker symbol is LSEG.