J.P. Morgan has acted as lead advisor and global coordinator on Saudi Arabia’s first euro-denominated green bond issuance—the inaugural transaction of its kind from a sovereign issuer in the MENA region. The €1.5 billion bond marks a milestone in Saudi Arabia’s sustainable finance ambitions and drew investor bids exceeding €7.2 billion.
The issuance represents a significant step in the Kingdom’s Vision 2030, its comprehensive strategy to transition to a more resilient and diversified economy. Proceeds from the green bond will support initiatives under Saudi Arabia’s Green Financing Framework, including investments in energy-efficient technologies, sustainable transport, and the planting of 10 billion trees.
“Demand for sustainability-themed securities, particularly green-labelled, remains robust in the European market,” said Paul O’Connor, Head of EMEA Sustainable Finance at J.P. Morgan. He added that investor appetite was bolstered by a global search for climate leadership following a retreat in U.S. federal climate action.
The seven-year green bond was well oversubscribed, tightening 40 basis points during the process and ultimately pricing at a spread of 115 basis points over its benchmark. The offering was accompanied by a $820 million 12-year conventional bond, priced at 145 basis points above mid-swaps.
J.P. Morgan’s involvement follows a long-standing relationship with Saudi Arabia, dating back 90 years. The firm advised the Kingdom’s National Debt Management Center in developing its sustainable financing framework and facilitated engagement with ESG-focused investors in the lead-up to the transaction. The bank is the only U.S. financial institution with an onshore presence in Saudi Arabia operating under two licences, with 137 staff based in its Riyadh office.
“This deal highlights our commitment to clients and our specific expertise in helping sovereign issuers navigate the complex and rapidly evolving sustainable finance debt capital markets,” said Aditya George, Head of Sustainable Finance for CEEMEA DCM at J.P. Morgan.
Salman Alhammadi, also of the CEEMEA DCM team, noted that the bank had previously led a series of landmark bond deals for the Kingdom, collectively raising over $100 billion. The green bond transaction, he said, underscores J.P. Morgan’s ability to deliver end-to-end advisory and execution services for sovereign clients across emerging markets.
