Saudi Arabia's Public Investment Fund (PIF) has obtained its first Murabaha financing facility worth $7bn (SAR 26.3bn), Al Riyadh reported.
The financing is supported by 20 international and regional financial institutions, the sovereign wealth fund announced on January 6.
The financing forms part of PIF's medium-term funding strategy and builds on its recent successful sukuk issuances over the past two years, strengthening the fund's financial and credit position.
"This first Murabaha financing demonstrates the flexibility and depth of PIF's funding strategy, reflecting our ongoing commitment to diversifying our funding sources and continuing to enhance our investments to drive transformation locally and globally," said Fahad Al-Saif, Head of Global Capital Finance and Investment Strategy & Economic Research.
PIF holds an Aa3 rating with a stable outlook from Moody's and A+ rating with a stable outlook from Fitch.
The fund's financing strategy relies on four main sources: government cash injections, transfer of government-owned assets to the fund, investment returns and loans and debt instruments.
The latest financing deal reinforces PIF's strong credit position and its approach to implementing best financing practices as it continues its investment expansion strategy.
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