The Saudi "investments" intends to borrow $ 7 billion

The Saudi Public Investment Fund is negotiating with a group of international banks, in order to obtain a revolving credit facility with a value ranging between $ 5 billion to $ 7 billion.

According to Arabiyanet, this step comes within the framework of the Fund's comprehensive financing strategy that it developed in 2017.

Sources said that the revolving loan allows the Fund to secure flexible financing, and also provides additional liquidity that can be used as needed, with the aim of seizing investment opportunities in any market, as happened with opportunities. Fruit seized by the fund during the Corona pandemic.

She added that this is in line with his mission and within his strategy to obtain diversified and sustainable financing, and with a methodology that applies best practices.

The fund owns 4 sources of financing, which are the money injected by the state, the transfer of ownership of government assets to its ownership, and its returns from investments, loans and debt instruments.

In 2017, the President of the Fund, Yasser Al-Rumayyan, launched a financing strategy to support the fund's long-term missions and support its strategy for local and international investments in line with the Kingdom's Vision 2030.

financing strategy

In this context, the Fund concluded in 2018 a syndicated loan of $ 11 billion, and in 2019 it concluded a $ 10 billion bridge loan, obtained by the Fund from The same major group of international banks with which it has strong ties.

and in 2020 the fund paid the bridging loan in full and before the deadline, according to all the conditions set forth in the deal, following the completion of the sale of the fund's share in SABIC.

The Fund's financing strategy follows a conservative approach. For example, $ 11 billion equates to only 3% of its total assets of $ 360 billion.

and includes the liquidity portfolio of the sovereign fund, the proceeds of the Aramco offering by the end of 2019, about 30 billion dollars, and the completion of the sale of SABIC in 2020 worth 75 billion dollars, and the injection of 40 billion Dollars from the Saudi Central Bank, in addition to a revolving credit facility (loan) worth between 5 and 7 billion dollars, which the fund is currently negotiating with international banks.