Saudi PIF said to plan first multi-billion dollar loan

Saudi Arabia’s Public Investment Fund (PIF) is talking to banks for its first-ever loan, with the aim to establish a group of lenders with which it will work on future deals, Bloomberg reported, citing sources familiar with the matter.

The country’s sovereign wealth fund has asked banks to participate in a multi-billion dollar loan, the sources said.

Lenders that participate in the deal will form the core banking group for the PIF, they added.

The PIF is willing to borrow as it works to diversify the Kingdom’s oil-dependent economy and boost returns from investments, managing director Yasir Al-Rumayyan had told Bloomberg TV in October.

The fund could raise about $5 billion from banks this year, the news agency said.

PIF had hired former Bank of America Merrill Lynch managing director Alireza Zaimi as head of corporate finance and treasury last year, to work on its borrowing plans.