#Saudi Wealth Fund Said to Seek Bridge Loan of Up to $8 Billion - Bloomberg

Saudi Wealth Fund Said to Seek Bridge Loan of Up to $8 Billion - Bloomberg:

Saudi Arabia’s sovereign wealth fund has started preliminary talks with banks to raise a loan expected to be between $5 billion and $8 billion as it seeks funding for new investments to diversify the kingdom’s economy, people familiar with the matter said.

The Public Investment Fund, or PIF, is looking for a bridge loan that will be fully underwritten by lenders and would be repaid with proceeds from the $69.1 billion sale of its stake in Saudi Basic Industries Corp. to Saudi Aramco, the people said, asking not to be identified because the information is private. Talks with banks are still at an early stage and the final size of the loan will depend on their response, the people said.

A spokesman for the PIF said its funding strategy includes “four sources of finance, including capital injections and asset transfers by the government, retained investment returns, and loans and debt instruments.” He declined to comment further.