Saudi wealth fund PIF eyes up to $7 bln loan for new investments

Saudi Arabia’s Public Investment Fund (PIF) is currently in talks with a group of international banks to raise between $5-7 billion in revolving loan, as it seeks cash for new investments, Al Eqtisadiah newspaper reported, citing people familiar with the matter.

The sources added that the loan would enable PIF to secure resilient funding, and provide additional liquidity that can be utilized in seizing lucrative investment opportunities.

As outlined in the PIF Program 2018-2020, the wealth fund’s four sources of funding are capital injections by the government; asset transfers from the government; retained investment returns; as well as the loans and debt instruments independently issued by PIF.

In September 2018, the PIF said it finalized the first step in its strategic program of medium-term funding via loans and debt instruments, as it completed the procedures of raising a $11 billion syndicated loan from major global banks, according to Argaam's data.

The fund said in October 2019 it signed a $10 billion syndicated bridge loan, to fund public projects and accelerate the pace of executing its investment program.

Last August, the fund repaid the bridge loan that was syndicated by ten global banks.