Thursday 23 August 2018

Riyadh to seek $11bn in bank loans after Saudi Aramco IPO stalls | Financial Times

Riyadh to seek $11bn in bank loans after Saudi Aramco IPO stalls | Financial Times:

Saudi Arabia’s sovereign wealth fund is primed to choose international banks to lend it $11bn, filling the hole left by the delayed listing of state energy group Saudi Aramco and providing financing for crown prince Mohammed bin Salman’s ambitious economic reforms.

The loans will be the first made to the Public Investment Fund, the vehicle used to drive the young prince’s vision for an economy less dependent on oil, which has placed bold bets on electric car maker Tesla, ride-hailing app Uber and space travel company Virgin Galactic.

The loans are particularly important for the fund after plans to list Saudi Aramco, from which it was due to receive proceeds, were postponed indefinitely. Riyadh’s focus has shifted away from the blockbuster IPO, which had been expected to raise in the region of $100bn, in favour of other means of financing for the PIF.

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