Riyadh, Saudi Arabia — Saudi Arabia’s Public Investment Fund (PIF) on Monday 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, PIF said in a statement.
PIF head of the Global Capital Finance Division and head of Investment Strategy and Economic Insights Division Fahad AlSaif 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.”
According to the release, 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 has four main sources of funding: capital injections from government, government asset transfers, retained earnings from investments, and loans and debt instruments.