The Kingdom of Saudi Arabia’s wealth fund, PIF is seeking loans worth up to $7 billion from international banks to bolster investments, media reports said. It is reported that PIF is looking to become the world’s biggest sovereign wealth funds through investments in and outside the Kingdom.
PIF is considered as one of the driving forces for the Kingdom’s economic diversification ambition away from oil. It is reported that PIF has contacted international banks for a revolving credit facility ranging between $5 billion and $7 billion and expects the development in early 2021. The loan will be utilised for opportunistic investments.
Furthermore, PIF has carried out opportunistic investments in stocks of few companies during the equity market sell-offs in March. The companies included Facebook, Citi and many others. It is reported that the PIF has since invested in utilities and materials exchange-traded funds (ETFs) and has sold its stocks in companies.
PIF acquired 2.04 percent in India’s largest retailer Reliance Retail Ventures in November for $1.3 billion. Earlier the sovereign fund has also invested $1. 5 billion in JIO platforms held by Reliance.
Saudi Crown Prince Mohammed bin Salman, told the media last month,” The PIF has become one of the major drivers of growth for the Saudi economy. The fund is now worth $346 billion. The goal under Vision 2030 is to have the fund’s assets exceed $1.866 trillion.”
The kingdom is focusing well towards its development plans for the future amid the pandemic.