PIF Repays $10bn Bridge Loan two months ahead of schedule

PIF Repays $10bn Bridge Loan two months ahead of schedule

PIF (the Public Investment Fund) repaid a $10bn syndicated loan facility with a group of international lenders; the fund said in a statement on Friday.

PIF has paid back the $10 billion bridge loan two months ahead of schedule. The Kingdom’s sovereign wealth fund secured the loan in October 2019 to accelerate the implementation of its investment program.

The move to repay the bridge loan in less than a year confirms wide confidence in the Fund’s ability to achieve its cash flow targets; the strength of its financial position, and the success of its various investment steps.

PIF has moved up to the 8th position among the largest sovereign wealth funds (SWF) in the world; with a net worth of $360bn, recent data from SWF Institute showed.

Last May, the PIF was in the 9th place with $360 billion worth of assets.

The growth of the assets of the Saudi sovereign wealth fund comes at a time; when the assets of sovereign wealth funds around the world have declined by 5% ($400bn) due to the repercussions of the coronavirus and market turmoil.

According to PIF’s 2018-2020 program, the fund relies on four main sources of financing which include money pumped by the state into the fund, government-owned assets that have transferred ownership of the fund, returns retained from investments, and loans and debt instruments issued by the fund independently.

According to a statement issued on Friday, the fund continues its efforts to diversify sources of income and achieve attractive financial returns in the long run that will benefit the Kingdom’s economy.