Saudi Arabia’s national wealth fund announced on Wednesday that a group of 25 banks had granted it a $17 billion credit, partially refinancing a debt it had obtained in 2018.
A five-year loan from 15 banks helped the Public Investment Fund (PIF) raise $11 billion in 2018. The loan “will be repaid early,” according to PIF.
PIF, which has committed to spending $40 billion domestically annually through 2025 to support the development of new businesses and the creation of jobs, is at the centre of the kingdom’s ambitious effort to wean the economy off oil.
PIF stated that the new loan, which has a tenor of seven years, involves banks from Europe, the United States, the Middle East, and Asia.
PIF made its debut in the debt capital markets in October by raising $3 billion using green bonds.
The sovereign wealth fund stated in a statement that “the new loan constitutes part of PIF’s medium-term capital raising strategy and its 2022 Annual Capital Raising Plan.”