Saudi Arabia's wealth fund plans to raise $7 billion to plow into new investments, report says
- Saudi Arabia's
Public Investment Fund, which is among the largest in the world, seeks to raise $7 billion in loans for new investments, Bloombergreported.
- This would be the third time the
sovereign wealth fundhas tapped international banks for cash.
- The fund seeks to diversify
Saudi Arabia's economy away from its dependence on oil by switching up its investment priorities.
- Earlier this year,
PIFditched its stake in some of the world's biggest companies to focus more on ETFs.
Saudi Arabia's sovereign wealth fund plans to raise $7 billion as it seeks new investments to shore up its finances against the collapse in demand for crude oil this year, Bloomberg reported on Thursday.
The kingdom's $347 billion fund, known as the Public Investment Fund, has sought the participation of international banks in a US dollar revolving credit facility of between $5 billion to $7 billion, the news agency said, citing sources.PIF's fundraising, which would be the third round from foreign banks, is meant to be completed by early 2021. Saudi's first loan raised $11 billion in 2018.
Billions were spent to grow its US stock portfolio by pumping investments into Boeing, Disney, and Facebook. But the fund ditched its shares in those companies by August to focus more on exchange-traded funds, which are a low-cost basket of stocks and other securities that increase diversification.PIF did not immediately respond to Business Insider's request for comment. Read More: Zoom has soared 497% this year. 3 analysts — including one of the most accurate in tech — break down whether you should buy, hold, or sell the stock as a vaccine becomes widely available.
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