Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, has obtained a $15 billion revolving credit facility for general corporate purposes.
This replaces the previous $15 billion revolving credit facility agreed in 2021.
This $15 billion revolving credit facility is offered for an initial period of three years, and is extendable for up to two additional years. The facility agreement was signed with a diverse global syndicate of 23 financial institutions from Europe, the U.S., the Middle East and Asia.
The financing reflects PIF’s strong credit rating as well as robust demand from PIF’s relationship banks and financial institutions. Signing this facility represents a continuation of PIF’s strategy of using a diverse range of financing instruments.
Loans and debt instruments represent one of PIF’s four sources of funding. The other three are capital injections from government, government assets transferred to PIF and retained earnings from investments. PIF is currently rated A1 by Moody’s with a positive outlook and A+ by Fitch with a stable outlook.
“The financing reflects PIF’s strong credit rating as well as robust demand from PIF’s relationship banks and financial institutions. Signing this facility represents a continuation of PIF’s strategy of using a diverse range of financing instruments,” it said.
Recently, PIF signed six memorandums of understanding (MoUs) worth up to $50 billion with leading financial institutions. The MoUs covered areas of cooperation such as encouraging two-way capital flows through both debt and equity, and came as part of PIF’s strategy to foster institutional partnerships globally.
