SAUDI ARABIA

PIF secures $3-bln K-SURE-covered syndicated term loan

November 28, 2023
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RIYADH — The Public Investment Fund (PIF) and Korea Trade Insurance Corporation (K-SURE) have inked a significant financing agreement. PIF successfully secured a term loan from a consortium of nine leading international lenders, with K-SURE providing coverage for the transaction.

The financing, boasting a door-to-door tenor of 13 years, will initially be set at $3 billion, with an option to potentially increase it to $5 billion, subject to pre-agreed terms and conditions. This milestone marks PIF's inaugural financing covered by an export credit agency, aligning with its ongoing efforts to diversify funding sources.

The collaboration between PIF and K-SURE, initiated through a memorandum of understanding in March 2022, solidifies their partnership. This K-SURE covered term loan aims to promote the export of Korean goods and services into projects and subsidiaries owned, either partially or fully, by PIF, thereby fortifying economic ties.

Fahad Al Saif, head of the Global Capital Finance Division at PIF, emphasized the significance of this collaboration, stating, "This collaboration with K-SURE underscores PIF's commitment to foster institutional partnerships as we continue to deliver on our medium-term capital raising strategy."

Inho Lee, President of K-SURE, highlighted the positive impact of the financial support, noting that it not only enhances technological competitiveness for Korean companies but also provides financial competitiveness to increase orders, contributing to the forward-looking partnership between the two countries.

This financing follows PIF's recent financial activities, including an international sukuk issuance of $3.5 billion, two green bond issuances totaling $8.5 billion, and a $17 billion corporate loan in 2022. PIF continues to diversify its funding sources, with loans and debt instruments playing a crucial role alongside other avenues such as retained earnings, capital injections, and government assets.

PIF maintains strong credit ratings, with Moody's rating it A1 with a positive outlook and Fitch rating it A+ with a stable outlook. — SG


November 28, 2023
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