Saudi Arabia’s sovereign wealth fund is seeking a loan of up to $7 billion from banks, its third such debt raising since 2018, two sources familiar with the matter said.
The move comes three months after it paid back a $10 billion bridge loan raised last year.
Over the last two years, banks have lent billions to the fund, which is the engine of Crown Prince Mohammed bin Salman’s economic transformation plans for Saudi Arabia.
The loan will be a revolving facility, allowing PIF to deploy more in the market if needed, one of the sources said.
Bloomberg had earlier reported the news.
PIF declined to comment.
PIF invested over $7 billion in U.S. and global stocks in the first quarter, raising its overall exposure to over $10 billion by the second quarter.
A U.S. regulatory filing this month showed the PIF had cut its exposure to North American equities by $3 billion in the third quarter, offloading some exchange traded funds (ETF) and stocks.
PIF, which manages a portfolio worth $360 billion, pursues a two-pronged strategy - building an international portfolio of investments and investing locally in projects that will help reduce Saudi Arabia’s reliance on oil.
Reporting by Saeed Azhar and Davide Barbuscia; Editing by Mark Potter