PIF completes $7 billion inaugural murabaha credit facility

• The murabaha credit facility is supported by a syndicate of 20 international and regional financial institutions
• The Shariah-compliant financing structure forms part of PIF’s continued objective of diversifying its funding sources

PIF today announced its first murabaha credit facility for the sum of $7 billion, as part of its medium-term capital raising strategy. The financing structure is supported by a diverse syndicate of 20 international and regional financial institutions.

Fahad AlSaif, PIF’s Head of the Global Capital Finance Division and Head of Investment Strategy and Economic Insights Division, said: “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.”

This financing complements PIF’s successful sukuk issuances over the past two years. It also underpins PIF’s strong financial position, as well as its best-practice approach to debt financing.

PIF is rated Aa3 by Moody’s with a stable outlook and A+ by Fitch, also with stable outlook. PIF has four main sources of funding: capital injections from government, government asset transfers, retained earnings from investments, and loans and debt instruments.