Up to 16 major banks provided offers for a loan to Saudi Arabia with which it would support its sovereign wealth fund, the Financial Times reported on Thursday without revealing sources. The lenders are set to be selected today and the original idea for an $8 billion package was lifted to $12 billion, insiders said. The initiative to underpin the Public Investment Fund came as the kingdom shelved the plan to list up to 5% in Saudi Arabian Oil Co., or Aramco, the state-owned monopoly in its sector.
The massive investment vehicle, which has stakes in Tesla, Uber and Virgin Galactic and a substantial interest in SoftBank's Vision Fund, is poised to lead the diversification efforts devised by Crown Prince Mohammed bin Salman. The article adds bankers were particularly eager to provide a loan as the PIF, managing $250 billion, should exit a share worth $70 billion in Saudi Basic Industries Corp.
The deal enables the transfer of Sabic's assets to Aramco and the oil giant would therefore need funding.
