There’s a different kind of green swirling around the region — and no, it isn’t the cash kind. Saudi Arabia’s sovereign wealth fund PIF has a ‘green’ sukuk (ie debt issuance) in the works, while the Arab Petroleum Investments Corporation (APICORP) just launched a green bond framework for it to follow when raising sustainability-related debt.
Since we only have snippets surrounding PIF’s upcoming green debt issuance, as of now the amount hasn’t been disclosed. However, the news comes alongside PIF’s governor mentioning that Saudi plans to deploy 50% of its investments in renewable and sustainable energy sources.
APICORP, the MENA region’s energy-focused development bank, also wants in on the sustainability drive as it released a green bond framework to use when lending to any one of its 100 clients across 26 countries. The bank currently holds about $3.6b of assets under its lending portfolio.
why it matters
PIF is primed to become the world’s first SWF with a green debt issuance, and reportedly has global ESG-leader in the financial realm, BlackRock (BLK), helping it develop an ESG-framework. With Vision 2030 coming around the corner, this decade will see a diversification and sustainability push from the GCC region.