The Clap
The Public Investment Fund (PIF) secured a $17 billion syndicated loan (SAR 63.7 billion) for a period of up to 7 years, the largest of its kind in terms of size and duration, and the first of its kind in terms of the international financial institutions participating in it.
What
The deal was in cooperation with 25 financial institutions, in the US, Europe,, Asia and the Middle East.
The coverage ratio of the new loan more than doubled, compared to the first loan secured by the fund in 2018.
PIF’s Investment Portfolio
The PIF has investments in 23 companies listed on the Saudi Tadawul, its ownership totaling to about SAR 817.37 billion in those companies.
The fund owns more than 5% in each of the companies, in addition to owning a 4% stake in Aramco.
So What
The loan represents the largest ever deal for any borrower in the Middle East, according to Bloomberg.
This is the second largest corporate loan in the world this year, after Walmart’s $17.05 billion loan.
Now What
The new loan is in line with the PIF’s medium-term financing strategy for the current year, using several financing tools to ensure access to diversified and sustainable financing sources in both private and public markets.
