PIF announced its first murabaha credit facility for the sum of $7 billion, as part of its medium-term capital raising strategy. The financing structure is supported by a diverse syndicate of 20 international and regional financial institutions.
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Fahad AlSaif, PIF’s Head of the Global Capital Finance Division and Head of Investment Strategy and Economic Insights Division, said: “This inaugural murabaha credit facility demonstrates the flexibility and depth of PIF’s financing strategy and use of diversified funding sources, as we continue to drive transformative investments, globally and in Saudi Arabia.”
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This financing complements PIF’s successful sukuk issuances over the past two years. It also underpins PIF’s strong financial position, as well as its best-practice approach to debt financing.
PIF is rated Aa3 by Moody’s with a stable outlook and A+ by Fitch, also with stable outlook. PIF has four main sources of funding: capital injections from government, government asset transfers, retained earnings from investments, and loans and debt instruments.
About Public Investment Fund (PIF)
Public Investment Fund (PIF) is building a world-class domestic and international investment portfolio, and is positioned to be transformed into the world’s largest sovereign wealth fund. The Public Investment Fund was originally established in 1971 to invest in commercial projects. In addition to making select investments in a range of companies and assets domestically and internationally. The Fund has contributed to the establishment of numerous Saudi Arabian companies, supporting innovation, diversification and non-oil sector development in the Kingdom.
In March 2015, the Council of Ministers issued a decree to transfer oversight of the Public Investment Fund to the Council of Economic and Development Affairs (CEDA). A new Board of Directors was appointed, chaired by His Royal Highness Crown Prince Mohammed Bin Salman Bin Abdulaziz, Chairman of CEDA.
