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Oct 7 (Reuters) - Saudi Arabia's Public Investment Fund (PIF) has cut the price guidance for a two-tranche green bond issue, which could raise up to 1.65 billion euros, after the issue attracted more than five times the demand, fixed income news service IFR reported on Tuesday.

The spread for the three-year bonds was adjusted to approximately 65 basis points over mid-swaps, from an initial range of 90 to 95 basis points, and the spread for the seven-year tranche was reduced to approximately 95 basis points over mid-swaps, from 125 basis points.

The service added that total demand for the two SIM cards exceeded nine billion euros.

Pricing is expected to be announced later on Tuesday.

The fund entered the green debt market in 2022 and has since issued several dollar-denominated bonds under its Green Finance Framework, which it also published on its website in 2022.

Under the framework, proceeds can be directed to renewable energy, clean transportation, and sustainable infrastructure projects, including those of its subsidiaries that are aligned with Saudi Vision 2030.

(Prepared by Badour Al-Saudi for the Arabic Bulletin - Edited by Marwa Gharib)