Various Saudi entities have issued debt this summer, including the sovereign, the national oil company Saudi Aramco and the country’s Public Investment Fund. Considering the many interlinkages between these organisations, this note proposes the adoption of a KSA+ 'lens’ for assessing the family of issuers (KSA, ARAMCO, PIFKSA, GASBCM) and conducts a joint analysis of the recent debt sales in the context of global climate goals.
* Issuance appears to have been co-ordinated across the capital structure, supporting the notion of investors using a KSA+ debt lens when considering exposures.
* For investors with KSA/KSA+ investment restrictions but seeking to engage on climate issues with Saudi Arabia, we recommend doing so by proxy through JPMorgan and/or Citi, as these banks have been very close to almost all issuances across the KSA+ complex.
* The Greensaif (GASBCM) private funding vehicle trades as the widest A+ credit in our universe, raising questions as to its rating.
