• First-of-its-kind issuance: Saudi Arabia becomes the first MENA sovereign to issue a euro-denominated green bond, raising €1.5B.
• Investor appetite strong: The bond was over 4x oversubscribed, attracting €7.2B in bids, signaling robust demand for green investments.
• Strategic execution: J.P. Morgan leveraged decades-long ties and deep ESG expertise to coordinate the transaction, reinforcing its leadership in sustainable finance.

Saudi Arabia has made a significant move in the global green finance arena, issuing the first-ever euro-denominated green bond by a sovereign from the MENA region. The €1.5 billion ($1.6 billion) issuance, led by J.P. Morgan, highlights the Kingdom’s growing commitment to sustainable development and economic diversification under Vision 2030.

“This deal highlights our commitment to our 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.

The green bond is designed to fund projects aligned with Saudi Arabia’s Green Financing Framework. Targeted initiatives include energy-efficient technologies, the planting of 10 billion trees, and expanded public transport infrastructure.

The bond drew over €7.2 billion in investor demand, more than four times the amount offered — a strong signal of investor confidence and appetite for sustainability-linked securities.

“Demand for sustainability-themed securities, particularly green-labeled, remains robust in the European market,” noted Paul O’Connor, Head of EMEA Sustainable Finance at J.P. Morgan. “That partly drove the decision to issue in euros: targeting Eurozone investors.”

J.P. Morgan’s leadership in this deal builds on a nearly century-long relationship with Saudi Arabia. The firm played a pivotal role in advising the country’s National Debt Management Center as it built a sustainable financing framework. It also facilitated investor engagement ahead of the issuance to build demand.

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“J.P. Morgan has a long-standing relationship with the Kingdom and has led a series of landmark bond deals raising more than $100 billion of bonds,” said Salman Alhammadi, from the CEEMEA DCM team at J.P. Morgan.

The bond priced competitively. The seven-year green tranche tightened by 40 basis points and closed 115 basis points above its benchmark. Additionally, the offering included a $820 million 12-year conventional bond, priced at 145 basis points over mid-swaps.

As global sustainability leadership shifts, J.P. Morgan’s orchestration of this high-impact issuance not only reinforces its market position but also reflects the increasing relevance of ESG-aligned investments for sovereign issuers and institutional investors alike.

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