JP Morgan has acted as lead advisor and global coordinator on Saudi Arabia’s €1.5 billion ($1.6 billion) green bond, the first euro-denominated issuance of its kind by a sovereign in the Middle East and North Africa region.

The landmark deal attracted more than €7.2 billion in orders, highlighting strong investor appetite for sustainability-linked debt and marking a significant milestone for Saudi Arabia’s green finance ambitions.

Proceeds from the bond will support initiatives under the Saudi Green Financing Framework, including energy-efficient infrastructure, reforestation efforts involving planting 10 billion trees and enhancements to public transportation.

Sustainability Push Drives Eurozone Strategy

“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 Debt Capital Markets at JP Morgan.

The seven-year green bond was priced at a spread of 115 basis points above its benchmark after tightening by 40 basis points during the book-building process.

The dual-tranche issuance included a $820 million 12-year conventional bond priced at 145 basis points over mid-swaps.

According to Paul O’Connor, head of EMEA sustainable finance at JP Morgan, investor sentiment for green-labeled securities remains strong in Europe, further bolstered by political shifts in the US following the 2024 presidential election.

“Demand for sustainability-themed securities, particularly green-labeled, remains robust in the European market,” O’Connor said. “That partly drove the decision to issue in euros: targeting Eurozone investors.”

Longstanding Ties Support Execution

The transaction highlights JP Morgan’s longstanding relationship with the Kingdom, dating back 90 years.

The US bank has led several high-profile Saudi debt deals, raising over $100 billion in bonds, and remains the only U.S. financial institution operating under two licenses in the country, with a 137-strong team based in Riyadh.

“JP Morgan’s ability to bring the Kingdom to the euro bond market reflects the holistic service we provide — combining deep sector expertise, investor relationships, and on-the-ground support,” said Salman Alhammadi of the firm’s CEEMEA DCM team.

Pillar of Vision 2030 Strategy

The green bond forms part of Saudi Arabia’s broader push to diversify its economy away from oil dependency and toward long-term environmental and fiscal sustainability under its Vision 2030 reform strategy.

Sustainability is a cornerstone of Vision 2030, aimed at economic transformation and improving the quality of life for future generations.

The green bond issuance signals a deepening commitment to that vision while positioning Saudi Arabia as a new but serious player in global sustainable finance markets.

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