Saudi Arabia’s Public Investment Fund (PIF) is in talks with local and international banks to raise about $5 billion this year, Bloomberg reported on Sunday, citing people familiar with the matter.
While no decision on timing or size has been taken, there is a possibility that PIF may seek government financing instead of a bank loan, the agency reported.
In October last year, PIF Managing Director Yasir Al-Rumayyan said the sovereign fund was looking at borrowing to boost returns from investments and help the government’s efforts to diversify the oil-dependent economy.
In the same month, the fund announced a new program for 2018-2020, which would see its assets under management reach SAR 1.5 trillion ($400 billion) by 2020.
Locally, the PIF is investing in the $500-billion NEOM project on the Red Sea Coast, an entertainment city near Riyadh, and another mega-tourism development on the Red Sea.
Meanwhile, its international commitments include a $20 billion deal to invest in Blackstone Group’s US infrastructure fund and nearly $45 billion investment in SoftBank Group’s technology investment fund.
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