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Saudi Arabia’s sovereign wealth fund raised $5.5 billion through a three-part green bond sale, the Public Investment Fund’s second debt offering in four months.

The PIF has secured orders worth more than $32 billion for the 7-, 12- and 30-year bonds, according to people familiar with the matter, who asked not to be named. The bond deal would be priced 115, 145 and 185 basis points above US Treasuries.

The wealth fund raised $3 billion in October with its first dollar bond sale, which also marked its first foray into ethical finance. The Saudi government, which controls the PIF, dipped into the debt market in January, raising $10 billion through its first Eurobond sale of 2023.

The PIF plans to use the proceeds for general corporate purposes and to finance, refinance and invest in green projects.

Strong bond yields and falling borrowing costs in high-quality bond markets have helped fuel an unprecedented bonanza of global debt selling, with a number of corporations and governments tapping into the sustainable bond market.

Sales of green bonds, the largest category of sustainable debt by volume issued, reached $57.2 billion in January, the highest since November, when borrowers raised $58.7 billion. The Indian government borrowed $1 billion in its first green bond issue to fund the clean energy transition.

Read more: Saudi Arabia expects more sales of fixed-rate debt and non-dollar bonds

Goldman Sachs Group Inc., JPMorgan Chase & Co., Standard Chartered Bank, BofA Securities, BNP Paribas, Citigroup, First Abu Dhabi Bank, HSBC Bank, Morgan Stanley, Crédit Agricole CIB, GIB Capital, ICBC International Securities, Mizuho, ​​​​SMBC Nikko and Société Générale managed the PIF offer.

–Assisted by Shaji Mathew.

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