Saudi’s PIF secures $7bn murabaha credit facility

The Public Investment Fund (PIF) of Saudi Arabia has closed its first-ever murabaha credit facility, raising $7bn as part of its ongoing medium-term capital-raising strategy.

The deal was backed by a broad syndicate of 20 international and regional financial institutions.

Fahad AlSaif, head of PIF’s Global Capital Finance Division and the Investment Strategy and Economic Insights Division, highlighted the significance of the new facility.

“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,” he said.

PIF has strong credit ratings

The sovereign wealth fund, which is at the forefront of Saudi Arabia’s ambitious Vision 2030 reform plan, has garnered strong credit ratings from leading agencies, including Aa3 from Moody’s and A+ from Fitch, both with stable outlooks.

The fund maintains four primary sources of funding: capital injections from the Saudi government, transfers of government assets, retained earnings from its investments, and loans and debt instruments.

This new financing move underlines PIF’s strategy to remain well-capitalised and capable of driving significant investments, both within the kingdom and internationally, as it continues to support the diversification of Saudi Arabia’s economy.