Saudi Arabia will soon issue green bonds as part of its drive to diversify its economy by embracing environmental, social and governance concerns, an official said on Monday.
Hani Al-Medaini, acting chief executive officer of the Finance Ministry’s National Debt Management Center, said the government will also be looking at financing backed by export credit agencies, in addition to conventional and Islamic bonds — known as sukuk.
He made the comments at an investment conference in Riyadh.
The Gulf has seen a surge of interest in ESG-related initiatives and deals amid growing awareness among global investors about such risks.
“We issued in 2020 a green bond transaction to King Abdulaziz Project for Public Transport, which is only a beginning for a long journey of sustainable finance ” said Al-Madani.
Saudi Arabia has recently hired banks to advise it on a sustainability financing framework, and sovereign fund Public Investment Fund said it planned to announce soon its first green debt deal.
Mohammed El-Kuwaiz, the chairman of Saudi Arabia’s Capital Markets Authority, speaking at the same conference, said he expected an increase in green financing instruments in the kingdom, supported by growth in the domestic debt markets and higher participation of foreign investors.—AN
