Saudi Electricity Co. sold the first green bond in Saudi Arabia in what amounts to the “latest milestone in the expansion of environment-friendly debt instruments,” according to a report in Bloomberg.
SEC “sold $1.3 billion of 5- and 10-year dollar-denominated green sukuk to finance green capital projects. Final spreads narrowed 30 basis points for both maturities from initial price talks to 140 basis points and 170 basis points, respectively, according to details of the deal that priced on Thursday,” Bloomberg reports.
The green sukuk is another small step on a much larger path for the Kingdom’s economy and its efforts at diversification away from oil. The government plans to spend billions on futuristic cities, transportation, tourism, and other developmental as part of Saudi Arabia’s Vision 2030 economic and social development blueprint.
The issuance “also joins a resurgence in green issuance among countries and companies, with placements topping last year’s tally for the year-to-date period,” Bloomberg notes. Germany, Sweden and Daimler AG all issued their first green deals this month after a flurry of sales in August.
[Click here to read the full article on Bloomberg.com]
