Last checked at 
(Updates with launch, final spread, demand)
DUBAI, Sept 29 (Reuters) - The Arab Petroleum Investments
Corporation (APICORP) sold $750 million debut green bonds with a
five-year maturity on Wednesday after drawing around $2.1
billion in orders for the climate-friendly debt, a bank document
showed.
The spread settled at the lower end of final guidance and 10
basis points tighter than initial price guidance, the document
from one of the banks on the deal showed.
Barclays, BofA Securities, Credit Agricole
, HSBC, JPMorgan, LBBW, Nomura
and Standard Chartered arranged the deal, with
Credit Agricole as structuring adviser.
Environmental, social and governance (ESG) concerns are
gaining ground in the oil-rich Gulf region, with borrowers
setting up ESG frameworks to transition to greener economies and
capitalise on a global surge in the awareness of sustainability
risks following the COVID-19 pandemic.
APICORP, a multilateral development bank headquartered in
Saudi Arabia, ended 2020 with close to $8 billion in total
assets and $115 million in net income, up from $112 million in
2019.
Abu Dhabi government-owned Etihad Airways is working on what
would be its third financing transaction linked to sustainable
investment and Saudi Arabia and its sovereign wealth fund are
both expected to issue ESG-linked debt.
The bonds will be used to finance, refinance or invest in
projects linked to its green finance framework, which include
projects in green buildings, renewable energy and pollution
prevention and control.
The institution, which is wholly owned by the ten member
states of the Organisation of Arab Petroleum Exporting Countries
(OAPEC), is a regular issuer in the debt capital markets
In February, APICORP sold $750 billion in five-year bonds
and in March reopened those bonds for subscription, raising
another $250 million.
(Reporting by Yousef Saba; Editing by Alison Williams)
