Saudi Arabia’s PIF gets $7 billion through its first Murabaha loan to support medium-term funding
Saudi Arabia’s Public Investment Fund (PIF) has obtained its first murabaha loan of $7 billion. This is part of its plan to raise money for medium-term projects.
New facility
- A group of 20 international and regional banks is supporting this new facility, showing strong confidence in PIF’s financial plans and performance, according to a PIF statement.
- This financing builds on PIF’s recent success in raising money through debt, including Sukuk offerings over the past two years.
- The $930 billion fund highlighted that the murabaha facility strengthens its solid financial position and commitment to global best practices in managing debt.
- “This first murabaha credit facility shows the flexibility and strength of PIF’s financing approach, using diverse funding sources as we continue to make transformative investments in Saudi Arabia and around the world,” said Fahad AlSaif, PIF’s head of Global Capital Finance and Investment Strategy.
Recent Agreements
In late October, the Public Investment Fund (PIF) made five agreements with Japanese financial institutions to manage two-way investments of up to $51 billion.
The agreements, signed with Mizuho Bank, Sumitomo Mitsui Financial Group, MUFG Bank, JBIC, and Nippon Export and Investment Insurance (NEXI), aim to support investments through loans and shares, according to PIF.
Also in October, PIF and the Hong Kong Monetary Authority announced a plan to create a $1 billion fund to help Hong Kong-based companies expand into Saudi Arabia.
Additionally, PIF agreed to be a key investor in Brookfield Asset Management’s $2 billion fund focused on the Middle East. The fund, called Brookfield Middle East Partners, will invest at least half its money in Saudi Arabia and international businesses entering the country, focusing on buyouts and other investment strategies.
Published: 7th January 2025
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