Saudi sovereign wealth fund raises $11 bln loan

Saudi Arabia’s Public Investment Fund (PIF) has signed an $11 billion international syndicated loan with global banks, the sovereign wealth fund said in a statement on Monday.

As outlined in the PIF Program 2018-2020, launched in October 2017, the wealth fund’s four sources of funding are capital injections by the government; asset transfers from the government; retained investment returns; and PIF loans and debt instruments independently issued by PIF.

“We are pleased to have completed this international syndicated loan, with the total size higher than initially planned due to strong interest and favorable pricing. This is the first step in incorporating loans and debt instruments into PIF’s long-term funding strategy,” said Yasir Al-Rumayyan, Managing Director of PIF.

“It is important to establish a core banking group as we continue to expand our activities and develop into one of the most prominent users of banking services in the region.”

This international syndicated loan facility represents the first time that PIF has borrowed, and the proceeds of this facility will be used for general corporate purposes.