Saudi Arabia’s Public Investment Fund (PIF) has unveiled its inaugural murabaha credit facility, amounting to $7B, as part of its medium-term strategy to raise capital.
The financing arrangement is backed by a broad consortium of 20 regional and international financial institutions.
Fahad Al Saif, PIF’s head of the Global Capital Finance Division and the Investment Strategy and Economic Insights Division, stated: “This first murabaha credit facility highlights the adaptability and breadth of PIF’s financing strategy and its reliance on diversified funding sources, as we continue to promote transformative investments both globally and within Saudi Arabia.”
This facility builds upon PIF’s successful sukuk issuances over the past two years. It reflects the fund’s robust financial standing and adherence to best practices in debt financing.
PIF holds an Aa3 rating with a stable outlook from Moody’s and an A+ rating with a stable outlook from Fitch.
The fund’s financing sources include:
•Capital injections from the government
•Transfers of government assets
•Retained earnings from investments
•Loans and debt instruments.
