DUBAI: Saudi Arabia’s $620 billion sovereign wealth fund is expected to tap international debt markets for a debut green bonds issue as soon as next week, five sources familiar with the matter told Reuters.
The Public Investment Fund is at the center of Saudi Arabia’s ambitious reform plans being spearheaded by Crown Prince Mohammed bin Salman to wean the economy off oil.
The crown prince said in December that it would invest about $40 billion in the local economy this year, after spending about $22 billion last year.
Reuters reported in July last year that PIF was setting up a financing framework that would allow it to raise green bonds.
PIF in February announced a green finance framework that showed net proceeds from a debt sale would go toward eligible projects, including in renewable energy, clean transport and green buildings.
PIF has been monitoring the market for months to find a window to issue, three sources said, amid enduring volatility that has rattled markets for much of this year as central banks use aggressive tightening to try to tame decades-high inflation.
That window could come as soon as next week, depending on market conditions, or possibly in October, two of the sources said.
PIF declined to comment.
The deal is expected to raise billions of dollars, sources have said.
Fitch Ratings and Moody’s in February assigned PIF an ‘A’ and ‘A1’ credit rating, respectively.
The banks on the deal are expected to be ones that have lent to PIF, two sources said.
PIF started raising bank debt in 2018 with an $11 billion facility, followed in 2019 by a $10 billion loan which it then repaid in 2020.
Those loans were provided by what PIF has called its core banking group comprising Bank of America, BNP Paribas , Citi, Credit Agricole, HSBC, JPMorgan, Mizuho, MUFG, Standard Chartered and SMBC.
In March last year, the wealth fund raised $15 billion from 17 banks comprising most of the core banking group as well as Credit Suisse, Deutsche Bank, First Abu Dhabi Bank, Goldman Sachs, Intesa Sanpaolo , Morgan Stanley, Natixis and Societe Generale .
RIYADH: Saudi Arabia’s main index returned to the 12000-point level on the back of a recovery in crude oil prices.
The Tadawul All Share Index gained 0.68 percent to end Monday’s session at 12,022, while the parallel market Nomu added 0.78 percent to finish at 20,899.
This was led by a 2.07 percent leap in the Kingdom’s largest valued bank Al Rajhi and a 1.34 percent increase in the country’s biggest lender the Saudi National Bank.
Shares of Saudi Aramco, the largest player on the Saudi oil market, edged up 0.4 percent, while Saudi Chemical Co. surged 6.74 percent.
Alinma Bank advanced 2.02 percent, while Saudi Arabian Mining Co., known as Ma’aden, increased 2.13 percent.
Tihama Advertising and Public Relations Co. gained 7.49 percent to lead the gainers, while Lazurde Co. for Jewelry lost 3.43 percent, leading the decliners, despite leading the gainers in early sessions.
In energy trading, Brent crude futures reached $93.68 a barrel, while US West Texas Intermediate traded at $87.42 a barrel, as of 3:23 p.m. Saudi time.
RIYADH: Massive technological developments spearheaded in Saudi Arabia have driven down the amount of energy needed to desalinate water, according to the CEO of ACWA Power.
Speaking during the Future of Desalination International Conference in Riyadh on Sept. 12, Paddy Padmanathan said there was still further to go to reduce the energy consumption in the sector, but added the whole process is now more “reliable”.
He also said the Kingdom is a prime investment destination for the water economy “due to the elements of overcoming the power challenges and capital low cost” compared to other countries in the region.
Reflecting on the change in production, Padmanathan said: “The business model was created here, and with massive technological advancement — really significant technological advancements — we have reduced the cost of the amount of energy that went into the desalination process, making it much much more reliable.
He added: “We have now got to a stage where (we have) the efficiencies. (There is) much more room to go, but, we come from — just taking global numbers — 15+ kilowatt energy consumption down to 2.9, 2.8, just in a matter of decade, all being from thermal process to membrane process.”
Padmanathan said the price of energy is one of the reasons why desalination has proved expensive, but the reduction in consumption is not the only aspect that could see the cost fall.
“I don’t want to use this word but I’m going to use it: energy has got ‘democratized’, all of the sudden sunshine is pretty much everywhere,” he said, referring to the potential of solar power.
Hosted by Saudi Arabia from Sept. 11-13 in Riyadh, the Future of Desalination International Conference aims to discuss opportunities for innovation and entrepreneurship in the desalination sector.
Policymakers, developers, contractors, researchers and innovators will attend to discuss the sector’s future.
CAIRO: Abu Dhabi Sewerage Services Co. has invited bids for wastewater network works located in Abu Dhabi and Al-Ain, reported MEED.
The deadline to receive applications is Sept. 27.
The company has also invited bids for a project for the rehabilitation and development of wastewater and the deadline is Oct. 4.
AMAALA to tender projects worth $1.6bn
AMAALA — the Saudi megaproject set to attract tourists to the Red Sea coast — is tendering SR6.1 billion ($1.6 billion) worth of contracts across 54 proposals, Zawya reported.
The project developer also revealed that 300 contracts valued at SR6.62 billion have already been awarded, where the majority of deals have been finalized with local firms.
“Surpassing 300 contract awards underscores the scale of this project and the significant progress being made as we press ahead with activity on the ground to bring our destination to life,” stated John Pagano, Group CEO of TRSDC, was quoted as saying.
Aramco starts bids on $5bn petrochemicals project
Saudi Aramco Total Refining and Petrochemical Co. is awaiting technical and commercial bids on its $5 billion Amiral petrochemicals project in Jubail, according to MEED.
Saptor — a joint venture between Aramco and France’s TotalEnergies — has pre-qualified eight bidders for the engineering, procurement and construction of the project.
The scope of work includes the expansion of Saptor’s operations at its refinery in Jubail into petrochemicals production.
Upon its completion, the complex will have the capacity to produce 1.5 million tons of ethylene annually, in addition to 500,000 tons of propylene a year.
RIYADH: Saudi Arabia’s Natural Gas Distribution Co. has signed a memorandum of understanding with Egypt’s TAQA Arabia to explore ways to develop and operate gas transportation services.
The MoU supports Natural Gas’ plan to expand and boost its profits, according to a bourse filing.
The natural gas producer signed the one-year agreement with the aim of collaborating more effectively and gaining practical experience in the energy and gas sectors, it said.
TAQA Arabia is one of the largest natural gas distribution companies in Egypt.
RIYADH: In recognition of its ships high marine quality standards in US ports, Saudi Arabia has become one of only 26 countries — and the first in the Middle East — to be awarded the Marine Quality Certificate for the 21st century.
This achievement was awarded to the Kingdom’s ships for fully complying with environmental and safety standards and requirements whilst visiting US ports according to the Saudi Press Agency.
The certificate is awarded by the US Coast Guard, which ensures safety and environmental management in US seaports and sea-lanes.
Obtaining the Maritime Quality Certificate marks an important step forward in the development of the Saudi naval fleet, which includes 426 ships.
This certificate facilitates the movement of Saudi naval vessels in regional waters and American ports and assists in increasing trade exchanges and strengthening the economic relationship between the two nations.
The US Coast Guard develops and publishes legal regulations and standards for safe design, shipbuilding, stability, electrical and mechanical systems, life-saving systems, fire safety equipment, and other ship equipment to achieve the highest levels of efficiency and quality.
Saudi wealth fund to issue green bonds as soon as next week – Arab News