Saudi Wealth Fund May Double Loan to $15 Billion for Deals
(Bloomberg) -- Saudi Arabia’s sovereign wealth fund may raise a loan that’s more than double what it sought late last year for new investments following strong demand from lenders, according to people familiar with the matter.
The Public Investment Fund is set to increase the loan size to as much as $15 billion from an initial plan to raise $5 billion to $7 billion, the people said, asking not to be identified as the information is private. The fund is looking to agree on terms with banks in the next few weeks and a final decision on the size hasn’t yet been made, they said.
The PIF declined to comment.
The $400 billion sovereign investor is key to the kingdom’s efforts to revive economic growth after what may be the deepest recession the world’s largest crude exporter has experienced in decades. Handed $40 billion earlier this year to buy global stocks, the PIF plans to plow the same amount into the domestic economy next year and again in 2022.
The loan would be the third time PIF has tapped international banks for funding. Its debut loan raised $11 billion in 2018, while it repaid a $10 billion bridge facility in August, two months ahead of schedule.
Saudi Arabia’s sovereign wealth fund will more than double in size to exceed 4 trillion riyals ($1.1 trillion) in assets under management by 2025, Crown Prince Mohammed bin Salman said last month.
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