Saudi Arabia Considering Issuing More Green Bonds to Meet Shortfall in its Borrowing Plan for 2021

Hani Al-Medaini, Head of the Saudi National Debt Office, has said in an interview that Saudi Arabia is SAR 24 billion short of its borrowing plan for 2021 and is therefore considering issuing more green bonds.

Why it Matters?

Although the Kingdom had planned to raise SAR 124 billion, as at end-August 2021, it had secured only SAR 100 billion. In addition to conventional bonds and Sukuk, the government will also be exploring financing backed by export credit agencies. On a related noted, the Gulf region has seen rising interest in environmental, social and governance (ESG)-related initiatives, as investors are becoming increasingly aware of such matters. Al-Medaini noted that a green bond was issued in 2020 to fund a public transport project.