Saudi PIF Secures $7B in Murabaha Facility

Funding | Jan 06, 2025 | Zawya

Saudi Arabia's Public Investment Fund (PIF) has successfully closed its inaugural Murabaha credit facility, securing $7 billion. This initiative is part of its broader medium-term capital-raising strategy, supported by a diverse syndicate of 20 international and regional financial institutions. This move underscores the flexibility and depth of PIF’s financing stratagem, complementing the fund’s previous sukuk issuances over the past two years and diversifying its funding portfolio. PIF's funding structure comprises government capital injections, government asset transfers, retained earnings, and various loans and debt instruments.

Sectors

Finance
Sovereign Wealth Funds
Banking

Geography

Saudi Arabia – Saudi Arabia is the location of the Public Investment Fund, which is the focus of the financing activity in the article.

Industry

Finance – The article focuses on the financial activities of the Public Investment Fund, including its innovative credit facility and diverse funding strategies.
Sovereign Wealth Funds – PIF is a sovereign wealth fund, and the article details its strategies for financing and investments.
Banking – The article involves international and regional banks participating in the $7 billion funding, indicating significant banking industry involvement.

Financials

$7 billion – The total amount raised through the inaugural Murabaha credit facility by PIF.

Participants

Name	Role	Type	Description
Public Investment Fund (PIF)	Borrower	Government	The PIF is Saudi Arabia's sovereign wealth fund responsible for the reported Murabaha credit facility.
International and Regional Financial Institutions	Lenders	Companies	A diverse syndicate of 20 financial institutions backing the $7 billion Murabaha credit facility.
Fahad AlSaif	Source	People	Head of the Global Capital Finance Division and the Investment Strategy and Economic Insights Division at PIF, quoted in the article.