Riyadh – Mubasher: Saudi Arabia’s Public Investment Fund (PIF) is reportedly in initial negotiations with banks to obtain a bridge loan expected to range from $5 billion to $8 billion, depending on the response of lenders, sources told Bloomberg News.

The loan, sought by the kingdom’s sovereign wealth fund, aims to finance new investments in a bid to diversify the GCC nation’s economy, according to the New York-based news agency.

Proceeds from the SAR 259.125 billion ($69.1 billion) sale of PIF's stake in Saudi Basic Industries Corp. (SABIC) to Saudi Aramco will be used to repay the bridge loan, the sources added, noting that negotiations with lenders are still at an early phase.

On 27 March, Saudi Aramco announced the closure of a deal for the acquisition of a majority stake in SABIC from the kingdom’s PIF.

On 10 April, the Saudi oil giant raised $12 billion in its first-ever international bond issue to finance its acquisition of a 70% stake in SABIC, the Saudi-based petrochemicals firm.