Saudi Arabia's National Debt Management Centre (NDMC) priced a EUR 1.5 billion seven-year green bond on 25 February 2025, marking the Kingdom's debut in the ESG-labelled sovereign debt market. The issuance was conducted under the Kingdom's Green Financing Framework.
The green tranche formed part of a EUR 2.25 billion dual-tranche deal, alongside a EUR 750 million 12-year conventional note, which drew orders of around EUR 10 billion. Proceeds are to be allocated to eligible green expenditures under the Framework.
ELIGIBLE SPENDING CATEGORIES
Targeted areas include energy efficiency, the Saudi Green Initiative's tree-planting programme and public transport.
The Green Financing Framework under which the bond was issued was developed in line with the International Capital Market Association's Green Bond Principles.
NATIONAL CONTEXT
The green bond forms part of the Financial Sector Development Programme, one of the Vision 2030 pillars designed to deepen the local capital market and attract foreign institutional capital.
Saudi Arabia has committed to reaching net-zero greenhouse gas emissions by 2060, and to generating 50 per cent of its electricity from renewable sources by 2030.
The NDMC described the issuance as "a significant milestone in its sustainability efforts".