Saudi Arabia prepares to offer its first green bond

RIYADH: The Saudi government and the kingdom’s sovereign wealth fund are preparing to launch green bonds in the coming months, according to Bloomberg.

The deals may raise billions of dollars each and will help the Public Investment Fund (PIF) finance projects that will be powered entirely by renewable energy, Bloomberg reported citing people familiar with the plans.

This step will encourage the Gulf state to plot a path away from fossil fuels, some investors said.

Saudi Arabia is trying to recast itself as a viable target for capital in a more environmentally friendly world increasingly shaped by climate change concerns, Bloomberg said.

Last month, the kingdom pledged to neutralize greenhouse gas emissions within its borders by 2060, and has earmarked billions for carbon-capture technology as part of that goal.