Skip to main content

OPEC Fund raises $1 billion via sustainability bond

Gulf states in the organization are showing increasing interest in funding projects related to the environment, renewable energy and green technology.
OPEC Fund Director General - Abdulhamid Alkhalifa

The OPEC Fund for International Development announced Friday that it raised $1 billion via a bond. 

The OPEC Fund offered the bond for sale on Wednesday, and this is the first time ever it has sold the debt instrument. The three-year, fixed-rate bond will go toward financing sustainability-related projects, the fund said in a press release. 

The bond will pay investors at an interest rate of 4.5%, according to Reuters. 

A 52% majority of investors were from Europe, the Middle East and Africa, with another 27% from Asia. Central banks and other official financial institutions constituted 62% of the investors, followed by private banks at 19%, according to the OPEC Fund. 

The bond was notably not available for sale in the United States due to it not being registered there, per the press release. 

The OPEC Fund for International Development was established by some members states of the Organization of the Petroleum Exporting Countries (OPEC) in 1976, though it is a separate organization and not funded by OPEC. Some countries are members of OPEC, but not the OPEC Fund, and vice versa. The OPEC Fund works on development projects in non-OPEC countries. 

Saudi Arabia, the United Arab Emirates, Iran, Iraq and Kuwait are all members of the OPEC Fund, as well as OPEC. Indonesia and Ecuador are part of the OPEC Fund but are no longer part of OPEC.

Why it matters: The OPEC Fund’s offering of a sustainability-focused bond is in line with its members’ increasing interest in funding projects related to the environment. Saudi Arabia offered green bonds in October to fund environmentally friendly projects. In December, a facility opened in the UAE to convert waste into green hydrogen

Know more: OPEC, Russia and other oil producers in the OPEC+ alliance decided during their December meeting to maintain their production cut of 2 million barrels per day. OPEC+ will meet again in February to discuss production levels. 

The price of Brent crude oil was $86 a barrel as of 11:00 am ET Friday. Prices have hovered between approximately $98 and $77 a barrel since OPEC+ first announced the cut in October. Brent crude is considered the global benchmark for oil prices. 

Saudi Foreign Minister Prince Faisal bin Farhan Al Saud touted “stability” in the oil market at the World Economic Forum this week. 

Editor's note: this article was updated to clarify the OPEC Fund's relationship to OPEC. 

Join hundreds of Middle East professionals with Al-Monitor PRO.

Business and policy professionals use PRO to monitor the regional economy and improve their reports, memos and presentations. Try it for free and cancel anytime.

Already a Member? Sign in

Free

The Middle East's Best Newsletters

Join over 50,000 readers who access our journalists dedicated newsletters, covering the top political, security, business and tech issues across the region each week.
Delivered straight to your inbox.

Free

What's included:
Our Expertise

Free newsletters available:

  • The Takeaway & Week in Review
  • Middle East Minute (AM)
  • Daily Briefing (PM)
  • Business & Tech Briefing
  • Security Briefing
  • Gulf Briefing
  • Israel Briefing
  • Palestine Briefing
  • Turkey Briefing
  • Iraq Briefing
Expert

Premium Membership

Join the Middle East's most notable experts for premium memos, trend reports, live video Q&A, and intimate in-person events, each detailing exclusive insights on business and geopolitical trends shaping the region.

$25.00 / month
billed annually

Become Member Start with 1-week free trial
What's included:
Our Expertise AI-driven

Memos - premium analytical writing: actionable insights on markets and geopolitics.

Live Video Q&A - Hear from our top journalists and regional experts.

Special Events - Intimate in-person events with business & political VIPs.

Trend Reports - Deep dive analysis on market updates.

All premium Industry Newsletters - Monitor the Middle East's most important industries. Prioritize your target industries for weekly review:

  • Capital Markets & Private Equity
  • Venture Capital & Startups
  • Green Energy
  • Supply Chain
  • Sustainable Development
  • Leading Edge Technology
  • Oil & Gas
  • Real Estate & Construction
  • Banking

We also offer team plans. Please send an email to pro.support@al-monitor.com and we'll onboard your team.

Already a Member? Sign in

Gulf Briefing Gulf Briefing

Gulf Briefing

Top GCC stories in your inbox each week

Trend Reports

Saudi Crown Prince Mohammed bin Salman (4th R) attends a meeting with Chinese President Xi Jinping (3rd L) at the Great Hall of the People in Beijing on February 22, 2019. (Photo by HOW HWEE YOUNG / POOL / AFP) (Photo credit should read HOW HWEE YOUNG/AFP via Getty Images)
Premium

From roads to routers: The future of China-Middle East connectivity

A general view shows the solar plant in Uyayna, north of Riyadh, on March 29, 2018. - On March 27, Saudi announced a deal with Japan's SoftBank to build the world's biggest solar plant. (Photo by FAYEZ NURELDINE / AFP) (Photo credit should read FAYEZ NURELDINE/AFP via Getty Images)
Premium

Regulations on Middle East renewable energy industry starting to take shape

Start your PRO membership today.

Join the Middle East's top business and policy professionals to access exclusive PRO insights today.

Join Al-Monitor PRO Start with 1-week free trial