Saudi Arabia intends to issue green and conventional bonds denominated in euros with tenors of 7 and 12 years, respectively, as soon as possible. The Saudi Ministry of Finance has appointed HSBC, JPMorgan, and Société Générale as global coordinators and joint bookrunners for the two-tranche offering. While no specific timing has been announced, the issuance will depend on market conditions, according to Bloomberg.

Saudi Arabia holds an "Aa3" rating with a stable outlook from Moody's and an "A+" rating with a stable outlook from Fitch. The aim of this new green bond issuance is to fund sustainable projects eligible under the Kingdom’s approved green financing framework.

This step is part of the Kingdom's efforts to enhance the sustainability of its national economy and develop green financing mechanisms in line with global trends.

The bond issuance follows Saudi Arabia's successful $12 billion international bond issue in January 2025, marking the start of the year with $19 billion in borrowing, including a $7 billion Islamic finance facility for its sovereign wealth fund.

Saudi Arabia has also approved its annual borrowing plan for 2025, anticipating financing needs of $37 billion for the fiscal year.

The debt market in Saudi Arabia is expected to remain active in 2025, continuing its growth driven by key factors including the "Vision 2030" initiatives, budget deficit financing needs, economic diversification, maturing obligations, and ongoing reforms, according to a recent report by Fitch Ratings.