J.P. Morgan has solidified its leadership in sustainable finance by spearheading Saudi Arabia’s historic €1.5 billion green bond issuance — the first-ever euro-denominated green bond from a sovereign in the Middle East and North Africa (MENA) region. The landmark deal underscores the firm’s deep-rooted advisory role and execution strength in global ESG capital markets.
The bond, which supports the Kingdom’s Vision 2030 environmental goals, was met with overwhelming demand, drawing over €7.2 billion in orders — more than four times the initial offering. The proceeds will fund a range of sustainable initiatives, including large-scale afforestation, energy efficiency upgrades, and enhancements to public transportation infrastructure.
J.P. Morgan, acting as lead structuring and bookrunning manager, played a central role in the transaction, from advising Saudi Arabia’s National Debt Management Center (NDMC) on the structuring of its Green Financing Framework, to coordinating investor outreach across Europe. The firm also helped determine euro-denominated green bonds as a strategic fit, targeting deep European demand for ESG assets.
“J.P. Morgan has a long-standing relationship with the Kingdom, and this deal further demonstrates our ability to connect sovereign issuers to global ESG-focused capital,” said Aditya George, Head of Sustainable Finance for CEEMEA Debt Capital Markets at J.P. Morgan.
The seven-year green tranche priced at a competitive 115 basis points over mid-swaps after tightening 40 basis points — a signal of investor confidence both in the issuer and the structure. A parallel $820 million 12-year conventional tranche also priced as part of the broader offering.
Paul O’Connor, Head of EMEA Sustainable Finance at J.P. Morgan, noted: “Investor demand for green-labelled securities remains extremely strong, especially in Europe. This transaction sets a clear benchmark for future sovereign issuances from the region.”
Backed by nearly a century of partnership with Saudi Arabia, J.P. Morgan has been pivotal in supporting the Kingdom’s transition toward a more sustainable and diversified economy. With this euro green bond, the firm reaffirms its leading position in sustainable finance and underscores the growing significance of ESG-driven investment strategies for global sovereign borrowers.
Excerpts from esg.com
Top of JPMorgan Chase Tower Dallas Texas On-Wikimedia by Joe Mabel
