DUBAI: The Public Investment Fund (PIF), Saudi Arabia’s premier investing institution, has arranged a $15 billion credit facility with a group of international banks as it seeks greater financial flexibility in its role as the main agency of the Kingdom’s economic transformation.
The sovereign wealth fund announced the facility on Wednesday after negotiations with international financial institutions. The amount raised is bigger than initial reports indicated late last year.
“PIF has signed a $15bn multi currency revolving credit facility with a group of 17 leading global financial institutions from Asia, the Middle East, Europe, the UK and the USA,” a statement from PIF said.
“The multi currency revolving facility reflects PIF’s prudent asset-liability management and flexibility, and forms part of its diverse and sustainable funding strategy within the Vision Realization Programs (VRP),” it added.
The Saudi government recently announced details of the second VRP running for a five-year term until 2025, designed to accelerate the diversification of the Kingdom’s economy away from oil dependency.
Under the program, PIF has pledged to inject $40 billion a year into the Saudi economy to generate jobs and stimulate private-sector activity in Saudi Arabia.
A revolving facility allows the borrower to draw down and repay parts of the facility during the duration of the loan arrangement. There was no timescale given for the facility, but reports suggested…