PIF ACQUIRES A STAKE IN GIP’S OFFSHORE WIND COMPANY SKYBORN

The Public Investment Fund (PIF) has purchased a stake in Global Infrastructure Partners (GIP) offshore wind firm Skyborn Renewables, with plans to invest in further sustainable energy projects.

Skyborn has a more than 7 GW offshore wind portfolio, with five operational and under-construction projects in Germany, France, and Taiwan, as well as a 30 GW pipeline of diverse offshore wind projects in various stages of development.

PIF has been investing in the low-carbon sector, including electric vehicles and solar energy projects, as part of a pledge to develop 70% of the Kingdom’s renewable energy by 2030. In 2021, together with the Tadawul Group, it introduced a voluntary carbon market initiative, which, in October 2022, held an inaugural auction of 1.4 million tons of carbon credits, the biggest ever carbon credit sale.

Skyborn has a more than 7 GW offshore wind portfolio

Turqi A Alnowaiser, Deputy Governor and Head of the International Investments Division at PIF, commented: “This investment opportunity enhances our objectives to increase our portfolio of investments in the low-carbon sector, which now includes solar, power generation, electric vehicles and offshore wind energy. Offshore wind has a key role to play in driving global decarbonization and we see significant growth opportunities for Skyborn.”

SAUDI PIF GENERATED 25% RETURN LAST YEAR

Bloomberg, citing a bond prospectus, has reported that Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), delivered a shareholder return of 25% last year. The prospectus for the PIF’s debt green bond sale, states that the yields more than doubled from an annual average of 12% between 2017 and 2020.

According to the report, PIF shareholders’ return last year was about in line with that of S&P 500 Index investors, who had a 27% increase during the same timeframe.

Returns in line with S&P 500 Index

With around $620 billion in assets under management, the state fund is developing a global portfolio of investments while simultaneously making local investments in initiatives that will lessen Saudi Arabia’s dependency on oil.