The Public Investment Fund (PIF) has announced its first Murabaha credit facility, valued at $7 billion, as part of its medium-term capital-raising strategy. The facility is backed by a syndicate of 20 international and regional financial institutions, reflecting PIF’s efforts to diversify its funding sources.
“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,” said Fahad AlSaif, Head of the Global Capital Finance Division and Head of the Investment Strategy and Economic Insights Division.
The PIF stated that the new financing complements its successful sukuk issuances over the past two years and reinforces its robust financial position. The fund emphasised that the credit facility aligns with its approach to best-practice debt management.
The fund’s primary sources of capital include:
- Capital injections from the government
- Government asset transfers
- Retained earnings from investments
- Loans and debt instruments
