Mubasher TV
Contact Us Advertising   العربية

Saudi PIF finalises terms on $10bn loan

Saudi PIF finalises terms on $10bn loan
PIF will pay 30 basis points over the London Interbank Offered Rate for the bridge loan

Riyadh – Mubasher: Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has finalised the terms of a $10 billion loan it is seeking to raise from a group of banks, Bloomberg reported.

PIF, which is among the largest sovereign wealth funds in the world, will pay 30 basis points over the London Interbank Offered Rate for the bridge loan, which is less than half the rate of its first borrowing.

The financing will have a one-year tenor with an option to extend by an additional 12 months.

It is worth mentioning that the fund received more than $20 billion of offers of the banks, as the loan will provide some liquidity for the PIF ahead of its Saudi Basic Industries Corp. (SABIC) stake sale.

The Saudi fund will repay the loan with the $70.1 billion it will get from the sale of its 70% holding in SABIC to Saudi Aramco.

Saudi Aramco will pay for half of the stake during 2019 and the rest over the coming two years.