The Public Investment Fund (PIF) has completed its first murabaha credit facility for $7 billion as part of the PIF’s medium-term capital raising strategy, the Saudi Press Agency reported.
Supported by the participation of 20 international and regional financial institutions, the first financing stands as a testament to the success of the PIF’s financing strategy.
Commenting on this remarkable success, PIF Head of the Global Capital Finance Division and Head of Investment Strategy and Economic Insights Division Fahad AlSaif stated that the inaugural murabaha credit facility highlights the flexibility and depth of the fund’s financing strategy. Moreover, it demonstrates the Kingdom’s pursuit to lead transformative investments through the use of diversified funding sources.
By completing the first financing, the PIF complements its successful sukuk issuances over the past two years. In addition, it crystalizes the fund’s strong financial position, as well as its best-practice approach to debt financing.
Crucially, the PIF features four main sources of funding, as follows:
- Capital injections from government
- Government asset transfers
- Retained earnings from investments
- Loans and debt instruments
It is worth mentioning that PIF has recently secured Aa3 rate by Moody’s with stable outlook and A+ by Fitch with stable outlook as well.
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