Please register to access this content.
To continue viewing the content you love, please sign in or create a new account
Dismiss
This content is for our paying subscribers only

Business Markets

Saudi wealth fund to tap $7b loan for new investments

Public Investment Fund is turning its focus on creating opportunities within kingdom



Yasir Othman Al Rumayyan , Managing Director of Public Investment Fund (PIF), has brought about monumental changes in the fund's priorities. The next two years will see many of these taking shape.
Image Credit: Gulf News Archive

Riyadh: Saudi Arabia's sovereign wealth fund plans to raise as much as $7 billion in loans as it seeks cash for new investments. The Public Investment Fund has approached international banks to participate in the multi-currency revolving facility of between $5 billion and $7 billion.

The PIF aims to complete the fund raising early next year and use the cash for opportunistic investments. The final size of the loan will depend on the response from banks.

The deal would be the third time PIF has tapped international banks for funding. Its debut loan raised $11 billion in 2018, while it repaid a $10 billion bridge loan in August, two months ahead of schedule.

Read More

Domestic pivot

The fund has shifted its focus from being mostly a domestic holding company to an international investment vehicle. The PIF's funding strategy includes cash or asset transfers from the government, borrowing, and retained earnings from its investments.

Advertisement

It invested about $8 billion in US equities in March, taking advantage of the slump in global markets. The PIF then sold most of them off a few months later as the markets rebounded.

Advertisement