The Public Investment Fund completes $11 billion international syndicated loan facility

Press Releases
17 September 2018 Riyadh, KSA
$11 billion international syndicated loan facility
  • First step in PIF’s strategic, medium-term debt funding program
  • Follows establishment of a new treasury function in 2017
  • Formal mechanism by which PIF has established its core banking group

The Public Investment Fund (PIF) of Saudi Arabia has taken the first step in its strategic, medium-term debt funding program, and completed a US$11 billion international syndicated loan facility.

H.E. Yasir Al-Rumayyan, Managing Director of PIF, commented: “We are pleased to have completed this international syndicated loan, with the total size higher than initially planned due to strong interest and favorable pricing. This is the first step in incorporating loans and debt instruments into PIF’s long-term funding strategy.”

“It is important to establish a core banking group as we continue to expand our activities and develop into one of the most prominent users of banking services in the region.”

As outlined in the PIF Program 2018-2020, launched in October 2017, the four sources of funding are capital injections by the government; asset transfers from the government; retained investment returns; and PIF loans and debt instruments independently issued by PIF.

This international syndicated loan facility represents the first time that PIF has borrowed, and the proceeds of this facility will be used for general corporate purposes. This follows the announcement of the establishment of a new treasury function during the Future Investment Initiative in October 2017.