(Updates with banks on the loan)
By Yousef Saba
DUBAI, March 10 (Reuters) - Saudi Arabia's sovereign wealth
fund, the Public Investment Fund, said on Wednesday it has
signed a $15 billion multi-currency revolving credit facility
with a group of 17 banks, which it said gives it access to extra
capital that can be deployed quickly when needed.
Reuters reported last month that PIF could raise between $13
billion and $15 billion, according to one source. Sources said
the one-year facility could be renewed four times.
The fund, the engine of Crown Prince Mohammed bin Salman's
economic transformation plans for Saudi Arabia, manages a
portfolio worth $400 billion. It has boosted its firepower
through several funding sources in recent years, including a $40
billion transfer from central bank reserves last year.
Sources had said the new loan would be used for general
corporate purposes. A revolving loan is one that can be drawn,
repaid and drawn again during the agreed lending period.
PIF started raising bank debt in 2018 with an $11 billion
facility, followed in 2019 by a $10 billion loan which it then
repaid last year.
The new loan was provided by 17 banks from Asia, the Middle
East, Europe, the United Kingdom and the United States, PIF said
in a statement on Wednesday.
The banks were BNP Paribas, Bank of America
, Citi, Credit Agricole, Credit Suisse
, Deutsche Bank, First Abu Dhabi Bank
, Goldman Sachs, HSBC, Intesa Sanpaolo
, JPMorgan, Mizuho, Morgan Stanley
, Natixis, SMBC, Societe Generale
and Standard Chartered, three sources said.
The banks either did not immediately respond to a request
for comment or declined to comment.
PIF is pursuing a two-pronged strategy, building an
international portfolio of investments while also investing
locally in projects that will help reduce Saudi Arabia's
reliance on oil.
Prince Mohammed, the architect of Saudi Vision 2030 that
aims to wean the economy off oil, said the wealth fund plans to
pump at least 150 billion riyals ($40 billion) into the local
economy each year through 2025.
($1 = 3.7511 riyals)
(Reporting by Yousef Saba, Saeed Azhar and Davide Barbuscia;
Editing by Alison Williams and Emelia Sithole-Matarise)