Saudi's sovereign wealth fund PIF plans first green debt issuance

PIF also working with BlackRock to develop ESG framework

  
Image used for illustrative purpose. Magnifying glass and banknote Saudi Arabia.

Image used for illustrative purpose. Magnifying glass and banknote Saudi Arabia.

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Saudi Arabia’s Public Investment Fund (PIF) is set to make its first green debt issuance and is working to further incorporate ESG in its over $400 billion worth of global investments. 

The multi-billion-dollar sovereign wealth fund will divulge more details of the major green issuance soon, said Yasir Al-Rumayyan, governor of PIF and chairman of Saudi Aramco’s board of directors. 

“One of the things that we will be announcing very soon is our green issuance… It’s going to be out very soon,” Al-Rumayyan said during a forum on Tuesday by the Future Investment Initiative Institute (FII). 

The sovereign wealth fund has recently tapped five international banks as members of an environmental, social and governance (ESG) panel for its capital-raising strategy. 

During the forum Al-Rumayyan talked about the importance of incorporating ESG principles in their investment strategy. He said the kingdom’s investment vehicle is also currently working with BlackRock Inc. to set up an ESG framework. 

“We’re working with many partners around the world to have a better ESG compliance to all the things that we do,” Al-Rumayyan said. 

He said part of their sustainability strategy is to allocate a significant portion of the investments in renewables. “By 2032, we will have 50 percent of our energy from renewable energy and 70 percent of that will be through PIF.” 

Saudi Arabia’s PIF is one of the largest sovereign wealth funds in the world. It has been mandated to realise the kingdom’s Vision 2030, which seeks to reduce the country’s reliance on oil and diversify  

Early this year, the wealth fund secured a $15 billion loan from 17 banks.  

The fund manages a portfolio of $400 billion investments in various sectors, including food and agriculture, real estate, utilities and renewables, aerospace, transport and logistics, construction, financial services and entertainment, leisure and sports, among many others. 

 (Reporting by Cleofe Maceda; editing by Seban Scaria  ) 

Cleofe.maceda@refinitiv.com 

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