PIF Secures Largest Ever General Corporate Purpose Loan Globally

The Public Investment Fund (“PIF” or the “Fund”) today announced that it has secured a new USD 17 ‎billion, seven-year senior unsecured term loan. ‎

This represents the largest self-arranged term loan ever raised for general corporate purposes, ‎supported by significant demand from an international syndicate and reflects a continuation of PIF’s ‎strategy to diversify its sources of funding, helping to drive impactful investment in Saudi Arabia and ‎internationally. PIF’s existing USD11billion, five-year loan, arranged in 2018, will be repaid early.‎

The transaction was supported by a broad based, global syndicate of 25 financial institutions from ‎Europe, the US, the Middle East and Asia. The transaction was more than twice oversubscribed. PIF’s ‎original 11bn loan facility in 2018 saw 15 financial institutions participate. ‎

‎ The new loan forms part of PIF’s medium-term capital raising strategy and its 2022 Annual Capital ‎Raising Plan – the plan includes several funding tools that would ensure PIF continuous and sustainable ‎access to diverse funding sources, including public and private.‎

Commenting, Fahad AlSaif, Head of Global Capital Finance Division at PIF said: “This new facility is a ‎strong endorsement of PIF’s medium-term capital raising strategy.”‎

‎ “It is a significant achievement for PIF, raising a record-sized term facility in the longest tenor ever for a ‎loan of its size that is subscribed to by an unprecedentedly diversified number of lenders. PIF will ‎continue to explore a variety of debt funding sources as it delivers on its strategic objectives.”‎

PIF received strong international credit ratings from both Moody’s and Fitch for the first time in February ‎‎2022, underlining the creditworthiness of the Fund and the quality of its investment portfolio. PIF has a ‎well-established long-term financing strategy that is built around four sources of funding, ensuring its ‎ability to finance activity over the long-term. These sources include capital injections by the government, ‎government asset transfers to PIF, retained earnings from investments, and loans and debt instruments. ‎