The News
Investors are clamoring to put their money into green bonds to finance clean energy projects, and Saudi Arabia’s sovereign wealth fund plans to accelerate issuances, Princess Rasees Al Saud, Public Investment Fund’s head of financial institutions and investor relations, said.
Speaking at Semafor’s World Economy Summit in Washington, DC, on Wednesday, Al Saud said that since 2022, the fund’s $11 billion in green bond issuances have been oversubscribed by five or six times. Looking ahead, she expects demand to remain strong.
PIF has issued most of its green bonds in US dollars, but it has branched out to other currencies to either fulfill investor preferences or to better align the debt with the underlying project, she said. When asked if the fund is considering issuing in Chinese renminbi, the princess said the fund is taking an “all-of-the-above” approach.
The fund has fully allocated proceeds from its green issuances over the past two years, with 95% directed to new projects. The $1 trillion PIF is tasked with diversifying the kingdom’s economy, and many of its projects such as the resorts along the Red Sea, are fully powered by renewable sources, Al Saud said.
“We are the non-oil investment arm of the kingdom, so it comes naturally for us to invest even more into the sustainable economy of Saudi and also globally,” she said.
Know More
Speaking at the same session on Wednesday, JPMorgan Chase Global Head of Sustainability Heather Zichal emphasized that global demand for clean energy investment remains a money-making opportunity.
“AI and the power demand is really driving a lot of new investments and underscoring the need to bring more electrons onto the grid,” Zichal said, adding that the conversation around energy security is also driving investment.
“As a bank, we reflect the real economy, we’re going to meet our clients where they are,” Zichal said, stressing that “we see huge opportunity today and we think that’s only going to continue to grow.”