PIF plans to borrow nearly $15 bln: report

Logo of Public Investment Fund

The Public Investment Fund (PIF) plans to borrow nearly $15 billion, more than double the amount planned in December 2020, following strong demand from lenders, Bloomberg reported, citing people familiar with the matter.

The loan is intended to finance new investments, the sources said, adding that the PIF is looking to agree on terms with banks in the next few weeks. No final decision on the size has been made yet.

In December, the PIF was reported to be in talks with a group of international banks to raise between $5-7 billion in revolving loan, as it sought cash for new investments, according to data available with Argaam.

The Saudi sovereign fund recently launched its strategy for the next five years, including SAR 1 trillion in domestic investment.

The PIF’s plans will be funded from four sources: cash in hand, assets transferred from the government in kind or cash, profits from current investments, and financing.