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Saudi PIF secures $10bn bridge loan from 10 int’l banks

Saudi PIF secures $10bn bridge loan from 10 int’l banks
The proceeds of this facility will be used for general corporate purposes

Riyadh – Mubasher: Saudi Arabia’s Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, has signed a syndicated bridge loan agreement valued at $10 billion with ten international banks, according to PIF’s statement.

The ten banks include Bank of America Corporation, BNP Paribas, Citigroup, Credit Agricole CIB, HSBC, J.P. Morgan, Mizuho Bank, MUFG Bank, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation.

“These banks are all part of PIF’s core banking group, created in September 2018 through the signing of a US$11 billion international syndicated loan facility,” the fund said.

The newly signed bridge loan will be repaid following completion of the agreed sale of PIF’s stake in Saudi Basic Industries Corporation (SABIC) to Saudi Aramco.

“The agreed sale of PIF’s stake in SABIC is anticipated to realise a significant level of capital to be redeployed according to PIF’s mandate, however, the regulatory requirements ahead of completion mean there is likely to be a period of delay before PIF is able to redeploy that capital,” Yasir Al-Rumayyan, Governor of PIF, commented.

He added that the facility will enable the fund to accelerate the implementation of its ambitious investment program while ensuring that we maintain a conservative level of leverage.