Saudi sovereign fund to cut banks' returns with new $10 billion loan: sources - Reuters:
Saudi Arabia’s Public Investment Fund (PIF) is putting together a $10 billion loan and plans to more than halve the returns it gave banks last year in its first multibillion dollar facility, two banking sources familiar with the matter said.
PIF raised $11 billion through a five-year loan last year and is in advanced talks to borrow $10 billion more. It plans to offer lenders an initial interest rate of around 30 basis points over the London Interbank Offered Rate (Libor) for the one-year loan, said the sources about the private talks.
The fund had offered banks 75 basis points over Libor last year with its $11 billion facility, sources said at the time.
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