Saudi sovereign fund secures $11b loan

Saudi Arabia’s sovereign wealth fund said yesterday it had secured its first ever international loan, boosting the kingdom’s diversification drive after its flotation of state oil giant Aramco stalled, reports AFP from Riyadh.

The Public Investment Fund said in a statement that it had obtained an $11 billion (9.4 billion euro) loan as “the first step in its strategic, medium-term debt funding programme”.

“We are pleased to have completed this international syndicated loan”, the fund’s managing director Yasir al-Rumayyan said.

The PIF had previously sought to raise billions of dollars through an initial public offering of shares in Aramco to fund projects that seek to reduce the kingdom’s dependence on oil.

Diversification is a key focus of Crown Prince Mohammed bin Salman’s Vision 2030 plan, which aims to transform the Saudi economy through a slew of projects from hi-tech start-ups to a new mega city.

But the Aramco IPO—once touted by Saudi officials as aiming to raise $100 billion—has hit the buffers, with executives at the oil giant citing unfavourable market conditions.

 

Saudi sovereign fund secures $11b loan

Saudi Arabias sovereign wealth fund said yesterday it had secured its first ever international loan, boosting the kingdoms diversification drive after its flotation of state oil giant Aramco stalled, reports AFP from Riyadh. The Public Investment Fund said in a statement that it had obtained an $11 billion (9.4 billion euro) loan as the first step in its strategic, medium-term debt funding programme. We are pleased to have completed this international syndicated loan, the funds managing director Yasir al-Rumayyan said. The PIF had previously sought to raise billions of dollars through an initial public offering of shares in Aramco to fund projects that seek to reduce the kingdoms dependence on oil. Diversification is a key focus of Crown Prince Mohammed bin Salmans Vision 2030 plan, which aims to transform the Saudi economy through a slew of projects from hi-tech start-ups to a new mega city. But the Aramco IPOonce touted by Saudi officials as aiming to raise $100 billionhas hit the buffers, with executives at the oil giant citing unfavourable market conditions.