Saudi Arabia's PIF hires banks for ESG panel

Saudi Arabia’s sovereign wealth vehicle Public Investment Fund (PIF) has hired five international banks as members of an environmental, governance and social (ESG) panel for its medium-term capital-raising strategy

Saudi Arabia’s sovereign wealth vehicle Public Investment Fund (PIF) has hired five international banks as members of an environmental, governance and social (ESG) panel for its medium-term capital-raising strategy, according to a Reuters report.

The PIF had sent a request for proposals (RFP) to banks in July to assist the wealth vehicle set up an ESG framework that would allow it to expand its funding base by attracting ESG-focused investors.

The five banks hired by the PIF for the ESG initiative are:

• Credit Agricole
• Deutsche Bank
• Goldman Sachs
• HSBC
• Standard Chartered

According to report in Reuters, Saudi Arabia’s finance ministry has hired HSBC and JPMorgan as structuring agents for the kingdom’s sustainability financing framework.

"The structuring of Saudi Arabia's Sustainability Financing Framework is a strategic step in line with the Kingdom's (Vision) 2030 direction towards sustainability and ESG commitment," Finance Minister Mohammed al-Jadaan said in a written statement to Reuters.

Reuters has previously reported that the establishment of PIF's framework could lead to a debut multibillion-dollar bond sale before the end of 2021.