Saudi Arabia’s Public Investment Fund (PIF) on Monday (January 6) successfully closed its inaugural murabaha credit facility, raising $7 billion as part of its ongoing efforts to secure medium-term capital.
The facility was supported by a diverse group of 20 international and regional financial institutions.
Fahad AlSaif, the head of PIF’s Global Capital Finance Division and Investment Strategy and Economic Insights Division, emphasized the importance of this new facility in PIF’s financing strategy.
“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,” AlSaif said.
The new credit facility builds on PIF’s successful sukuk issuances over the past two years, further pushing its financial stability and commitment to best practices in debt management.
PIF Strengthens Global Financial Standing With New Facility
With an Aa3 rating from Moody’s and A+ from Fitch, both with stable outlooks, PIF is cementing its position as a leading global financial entity, according to its statement.
The press release noted that PIF’s capital structure is backed by four primary funding sources: contributions from the Saudi government, asset transfers, retained earnings from investments, and financing through loans and debt instruments.
Focused on fostering economic growth both in Saudi Arabia and internationally, PIF directs its strategy toward financing transformative projects.
The $7 billion murabaha credit facility will bolster PIF’s liquidity, enabling continued investment both locally and globally.
By diversifying its funding with a Shariah-compliant approach, PIF seeks to enhance its financial partnerships while complementing existing financing avenues like sukuk issuances.
