DUBAI: Saudi Arabia’s sovereign wealth fund could sell bonds as soon as the fourth quarter as it seeks to develop a new ESG framework, Reuters reported.
It comes as environmental, social, and governance (ESG) investing principles become more widespread among institutions in the Kingdom.
The Kingdom’s Public Investment Fund has asked banks to help it develop an ESG framework, Reuters reported, citing four sources, in a move that could allow it to expand its funding base to attract ESG-focused investors.
ESG investing is set to become a major theme of this year’s Future Investment Initiative (FII), Saudi Arabia’s flagship investment forum planned for October.
“We have a moral responsibility as the FII Institute to own this global conversation about ESG, because it is becoming a very hot topic,” Richard Attias, the institute’s chief executive officer, told Arab News in an interview earlier this month.
One of the sources said developing an ESG framework would likely precede a multi-billion dollar bond sale, which would be the Saudi wealth fund’s first.
Once an ESG framework is developed, PIF may need credit ratings and an audit of its finances before it can issue bonds, the source said, adding the fund could sell bonds in the fourth quarter if “all goes smoothly.”
PIF did not respond to an emailed request for comment from Reuters.
ESG framework may pave way for first Saudi PIF green bond sale
https://arab.news/zpne5
ESG framework may pave way for first Saudi PIF green bond sale
- ESG investing is set to become a major theme of this year’s Future Investment Initiative (FII)
Closing Bell: Saudi equities continue 4-day upward trend
RIYADH: Saudi equities closed higher on Wednesday, with the Tadawul All Share Index rising 51.52 points, or 0.47 percent, to finish at 10,945.15.
Trading activity was robust, with 373.9 million shares exchanged and total turnover reaching SR6.81 billion.
The MT30 Index also ended the session in positive territory, advancing 11.93 points, or 0.82 percent, to 1,472.82, while the Nomu Parallel Market Index declined 116.82 points, or 0.49 percent, to 23,551.47, reflecting continued volatility in the parallel market.
The main market saw 90 gainers against 171 decliners, indicating selective buying.
On the upside, Al Kathiri Holding Co. led gainers, closing at SR2.18, up SR0.12, or 5.83 percent. Wafrah for Industry and Development Co. advanced to SR23, gaining SR0.99, or 4.5 percent, while Al Ramz Real Estate Co. rose 4.35 percent to close at SR60.
SABIC Agri-Nutrients Co. added 4.21 percent to SR118.70, and Al Jouf Agricultural Development Co. climbed 4.12 percent to SR45.
Meanwhile, losses were led by Saudi Industrial Export Co., which fell 9.73 percent to SR2.69. United Cooperative Assurance Co. declined 5.08 percent to SR3.74, while Thimar Development Holding Co. dropped 4.54 percent to SR35.30.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. retreated 4.15 percent to SR48.50, and Gulf Union Alahlia Cooperative Insurance Co. slipped 3.96 percent to SR10.44.
On the announcement front, Saudi National Bank announced its intention to issue US dollar-denominated Additional Tier 1 capital notes under its existing international capital programe, with the final size and terms to be determined subject to market conditions and regulatory approvals.
The planned issuance aims to strengthen Tier 1 capital and support the bank’s broader financial and strategic objectives.
The stock closed at SR42.70, gaining SR0.70, or 1.67 percent, reflecting positive investor reaction to the capital management move.
Separately, Almasane Alkobra Mining Co. said its board approved the establishment of a wholly owned simplified joint stock company to provide drilling, exploration and related support services, with a share capital of SR100 million and headquarters in Najran, subject to regulatory approvals.
The new subsidiary aligns with the company’s strategy to enhance operational efficiency and expand its role in the Kingdom’s mining sector.
Shares of Almasane Alkobra Mining closed at SR98.70, up SR0.30, or 0.3 percent, by the end of the session.
