London Stock Exchange Group PLC on Thursday announced it will admit a $3 billion green bond from Saudi Arabia’s Public Investment Fund.
It includes a 100-year tranche. LSEG calls the green bond listing the ‘first to be issued by a sovereign wealth fund’.
Formed in 1971 to support the Saudi economy, Saudi Arabia’s PIF is one of the world’s largest sovereign wealth funds and has around $620 billion in assets under management.
‘The $3 billion issuance, issued in three 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,’ LSEG said.
‘The green bond listing, including 100-year tranche, is first to be issued by a sovereign wealth fund,’ LSEG stated. The bond will be displayed on the sustainable bond market.
‘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,’ LSEG explained.
London Stock Exchange Group Chief Executive Julia Hoggett said: ‘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’.
LSEG shares were 0.3% lower at 7,660.00 pence each in London on Friday around noon.
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