Saudi Arabia’s sovereign wealth fund issues ‘century bond’

Saudi Arabia’s sovereign wealth fund has raised $3bn through its first ever green bond issuance. As part of the issuance, the Public Investment Fund (PIF) also announced a 100-year tranche to raise $500m. The tranche has a coupon rate of 5.375%. “Century bond” is a relatively rare issuance category, although firms such as Coca-Cola and countries such as Austria have done so in the past. The demand for the PIF green debt issuance was visibly high, with the bond issuance oversubscribed by a factor of eight. There are two additional tranches: a $1.25bn five-year tranche with a coupon rate of 5% and another $1.25bn tranche with maturity of ten years. In total, PIF has raised $3bn through its first ever green debt issuance.