Saudi Aramco’s $80 Billion Deal Muddies Wealth Fund Before Green Debut - Bloomberg
The Saudi sovereign wealth fund’s environmental credentials suddenly look a lot less appealing after it was handed an $80 billion stake in the world’s largest oil exporter, just ahead of its planned debut green bond.
The 4% of Aramco that the Saudi government is transferring to the Public Investment Fund will make up about 14% of the $580 billion sovereign wealth fund. That would make it the PIF’s biggest holding by value, according to data compiled by Bloomberg.
Just days before the transfer of Aramco shares, Moody’s Investors Service lavished praise on the Saudi fund for its limited exposure to “the energy and resources sector” or “environmental and social risks.”
The addition of Aramco shares underlines the dilemma facing investors already struggling to reconcile Saudi Arabia’s record on climate with its plans for sustainable financing, as it rolls out ambitious targets to stay relevant amid the energy transition.
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