Assistance request from the banks for Saudi Public Investment Fund.
The Saudi Public Investment Fund has asked banks to help create an environmental, social framework that will lead to the sale of multibillion-dollar bonds.
Four sources said the Saudi Public Investment Fund had asked banks to help create an environmental, social framework that might expand the capital base to attract investors focused on the region.
Informed sources, who asked not to be named because of the confidentiality of the matter, said that the ruling Public Investment Fund sent a proposal to the banks last month.
The fund, which is at the heart of Saudi Crown Prince Mohammed bin Salman’s 2030 vision plan, has funded tens of billions of dollars in loans over the past few years to prevent the economy from becoming dependent on oil.
One source said the development of such a framework was likely to lead to the sale of multibillion-dollar bonds, a first for the Saudi fund.
One source said that once the framework is in place, the fund may need to credit and audit its financial statements before the bonds are issued, and if all goes well, the fund may be in the final quarter of the bond year to sell.
Last March, Saudi Arabia decided to borrow $ 15 billion from foreign banks, its third type of debt since 2018, and this is the total amount of bank debt, after taking two loans worth $ 11 billion and $ 10 billion in recent years. Reaches more than $ 30 billion.
