Saudi PIF Secures $7 Billion Murabaha Credit Facility

The Public Investment Fund (PIF) of Saudi Arabia has successfully closed its inaugural Murabaha credit facility, securing $7 billion as part of its medium-term capital-raising strategy. This move marks a pivotal step in PIF’s efforts to strengthen its financial position and expand its investment capabilities.

Supported by a Robust Financial Syndicate

The transaction was underpinned by a diverse syndicate of 20 international and regional financial institutions. This widespread support reflects the confidence of global financial markets in PIF’s strategic vision and financial management.

Leadership Insights on the Deal

Fahad AlSaif, head of PIF’s Global Capital Finance Division and the Investment Strategy and Economic Insights Division, emphasized the importance of this new credit facility. He highlighted its role in reinforcing PIF’s ability to pursue transformative investments in line with Saudi Arabia’s economic diversification goals.

“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,” he said.

Strong Credit Ratings Bolster Investor Confidence

PIF has earned high credit ratings from leading agencies, including an Aa3 rating from Moody’s and an A+ from Fitch, both with stable outlooks. These ratings underscore the fund’s financial stability and its credibility as a sovereign wealth entity driving the Vision 2030 reform

Diverse Funding Sources Ensure Stability

The fund’s robust financial framework is supported by four key funding sources:

- Government Capital Injections – Direct contributions from the Saudi government.

- Asset Transfers – Transfers of government-owned assets to PIF’s portfolio.

- Retained Earnings – Profits generated from the fund’s investments.

- Loans and Debt Instruments – Financing through credit facilities and bonds.

This diversified approach ensures PIF remains well-capitalized to pursue its ambitious investment agenda.

Advancing Saudi Arabia’s Vision 2030

The $7 billion credit facility highlights PIF’s commitment to driving economic diversification and growth. By maintaining a strong capital base, the fund continues to play a central role in achieving the Vision 2030 goals, fostering development both domestically and internationally.