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Saudi Sovereign Wealth Fund Finalizes Terms on $10 Billion Loan

  • PIF’s second borrowing is less than half cost of first loan
  • The loan will provide liquidity ahead of Sabic stake sale
Riyadh, Saudi Arabia.

Riyadh, Saudi Arabia.

Photographer: Simon Dawson/Bloomberg
Updated on

Saudi Arabia’s sovereign wealth fund finalized the terms of a $10 billion loan it’s seeking to raise from a group of banks, according to people familiar with the matter.

The Public Investment Fund will pay 30 basis points over the London Interbank Offered Rate for the bridge loan -- less than half the rate of its first borrowing, the people said, asking not to be identified because the information is private. The financing will have a one-year tenor with an option to extend by an additional 12 months, they said.