The Public Investment Fund (PIF) has signed a USD 15 billion (SAR 56.25 billion) revolving credit facility (RCF) agreement, replacing the same amount of financing agreed upon in 2021.
Global Partnership
PIF signed the agreement with an international coalition comprising 23 financial institutions from Europe, the United States, the Middle East, and Asia.
The credit facilities are provided for an initial three-year term, extendable for up to two additional years.
So what
PIF, the sovereign wealth fund of the Kingdom, noted that the financing reflects the strength of its financial position and credit rating.
Additionally, it highlighted PIF’s huge demand from PIF’s relationship banks and financial institutions.
Securing this credit facility applies PIF’s strategy to tap various financing tools to fuel its operations.
Some context
Loans and debt instruments are one of the four main funding sources for “PIF.”
This complements financing instruments, including cash contributions from the government, government assets transferred to the fund, and retained earnings from investments.
The fund received an “A1” rating with a positive outlook from Moody’s credit rating agency.
It also received an “A+” rating from Fitch, which gave a stable outlook to the sovereign fund.
Now what
Saudi Arabia’s sovereign wealth fund plans to invest heavily in various sectors locally and internationally in the coming years.
This is to achieve the Kingdom’s “Vision 2030” strategy of diversifying the Saudi economy away from oil.
