Saudi Arabia's PIF completes $7b inaugural Murabaha Credit Facility

RIYADH: The Public Investment Fund (PIF) of Saudi Arabia announced on Monday its first Murabaha Credit Facility for the sum of $7 billion as part of its medium-term capital raising strategy.

The financing structure is supported by a diverse syndicate of 20 international and regional financial institutions, the PIF said in a press release.

Fahad AlSaif, head of PIF’s Global Capital Finance Division and head of Investment Strategy and Economic Insights Division said that this inaugural murabaha credit facility demonstrates the flexibility and depth of Public Investment Fund’s financing strategy and use of diversified funding sources, as it continues to drive transformative investments, globally and in Saudi Arabia.

According to the release, this financing complements PIF’s successful sukuk issuances over the past two years. It also underpins PIF’s strong financial position, as well as its best-practice approach to debt financing.

Public Investment Fund is rated Aa3 by Moody’s with stable outlook and A+ by Fitch with stable outlook. PIF has four main sources of funding: capital injections from government, government asset transfers, retained earnings from investments, and loans and debt instruments, Saudi Arabia Press Agency reported, quoting the statement.