Saudi Arabia's PIF receives USD15B revolving credit facility
Date
8/28/2024 5:41:26 AM
(MENAFN) Saudi Arabia's Public Investment Fund (PIF) has successfully secured a USD15 billion (SAR 56.25 billion) revolving credit facility agreement, as announced on its official website. This new facility will replace a similar agreement made in 2021, maintaining the same financial scale. The credit facility is initially set for a period of three years, with an option to extend for an additional two years. The funds are earmarked for general institutional purposes, reflecting the PIF's ongoing commitment to its broad investment and operational strategies.
The facility agreement has been established with a diverse consortium of 23 financial institutions spanning Europe, the United States, the Middle East, and Asia. This broad international involvement underscores the robust global confidence in the PIF’s financial standing. Loans and debt instruments form a crucial part of the PIF’s financing strategy, alongside government cash contributions, asset transfers from the government, and returns on investments.
The agreement highlights the PIF's strong financial position and favorable credit rating, as affirmed by major credit rating agencies. Moody's has assigned an A1 rating with a positive outlook to the fund, while Fitch has provided an A+ rating with a stable outlook. These ratings reflect both the PIF's financial stability and the high level of interest from banks and financial institutions, reinforcing its significant role in global financial markets.
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