Saudi Arabia raises $2.4 billion with Euro bonds, including its first green bonds
Saudi Arabia has raised $2.4 billion (€2.3 billion) by selling euro-denominated bonds. This includes its first-ever green bond as part of its Global Medium-Term Note Issuance Program (GMTN).
Euro Bonds
Saudi Arabia issued euro bonds in two parts, and investors wanted four times more than what was available. The total demand reached $10.5 billion, according to the National Debt Management Center (NDMC).
One part of the bond, called the “green tranche,” is worth $1.6 billion and will last for seven years. The second part is worth $787.2 million and will last for 12 years.
This is Saudi Arabia’s first time issuing green bonds. It is part of a plan to grow the financial sector while also helping the country reach its sustainability and net-zero emission goals.
“This also shows Saudi Arabia’s commitment to investors and financial markets and is a key step toward achieving the goals of Vision 2030,” NDMC said.
The government selected HSBC, JPMorgan, and Societe Generale as the main banks to handle the bond sale.
Previous Issuances
Saudi Arabia last issued euro bonds in 2021, raising $1.6 billion. Those bonds will mature in 2030.
In January, NDMC completed the sale of $12 billion in bonds under its Global Medium-Term Note (GMTN) program. This included:
- A $5 billion bond for three years (matures in 2028)
- A $3 billion bond for six years (matures in 2031)
- A $4 billion bond for 10 years (matures in 2035)
Large Market
Fitch Ratings estimated in September that Saudi Arabia’s bond and sukuk market will grow beyond $500 billion in the coming years.
Key Achievement
In early 2024, Saudi Arabia became the largest issuer of US dollar-denominated debt among emerging markets (excluding China). It was also the world’s top sukuk issuer, according to Fitch.
Published: 27th February 2025
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