Saudi Arabia is borrowing $ 11 billion for the first time
20:05 - 24/08/2018
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Saudi Arabia's sovereign wealth fund has raised a $ 11 billion loan from banks as it seeks to bolster its financial position to finance its economic transformation plans, a well-informed source said.
This commercial loan is the first to be received by the Public Investment Fund (PIF), which is authorized to assist in the implementation of Vision 2030, an ambitious reform and economic program announced by Riyadh in 2016 aimed at reducing the Kingdom's dependence on oil exports.
The source told Reuters news agency that the sovereign wealth fund would pay a margin of 75 basis points above the London Interbank Offered Rate (LIBOR).
Sources said in July that the loan money would be used to finance public purposes. In addition to the loan, the fund is expected to receive tens of billions of dollars from selling part of its stake in Saudi Basic Industries Corporation (SABIC) to Saudi Aramco or selling the stake in full. End 25 n