Saudi Public Investment Fund agrees on $10bn loan terms  

The Public Investment Fund of Saudi Arabia (PIF) has finalised the terms of the $ 10 billion worth loan that it is seeking to receive from several banks. It is the first commercial loan for the Fund charged with implementing the 2030 plan overseen by Crown Prince Mohammad bin Salman.

Bloomberg News reported the information, citing unnamed informed sources.

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The PIF will pay an interest rate of 30 basis points more than the London Inter-bank Offered Rate (LIBOR), i.e. less than half the interest paid by the Fund over its previous loan, the sources indicated.

The sources pointed out that the term of the loan is one year with the possibility of extension for an additional 12 months.

The sources added that the PIF had received over $ 20 billion in lending offers and that the loan would provide the fund with some cashflow before offering a stake in Saudi basic metals company (SABIC).