Riyadh – Mubasher: The Public Investment Fund (PIF) and Korea Trade Insurance Corporation (K-SURE) penned a financing agreement, under which the Saudi fund raised the syndicated term loan to $5 billion from $3 billion.
The financing, which carries a door-to-door tenor of 13 years, will be provided through a syndicate of nine top international banks that will be covered by K-SURE, according to a press release.
Subject to pre-agreed terms and conditions, the transaction will mark PIF’s first financing endorsed by an export credit agency in line with its plans to diversify its sources of funding.
The joint deal aims to boost the export of Korean goods and services into various projects and subsidiaries either partially or fully owned by PIF. This is in addition to reinforcing the economic partnerships.
Fahad Al Saif, Head of the Global Capital Finance Division at PIF, said: "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.”
“The financing is part of PIF’s four primary sources of funding and strengthens economic ties between Saudi Arabian and South Korean businesses,” Al Saif continued.
Inho Lee, President of K-SURE, underlined: “Through this financial support, Korean companies have not only gained technological competitiveness but also financial competitiveness to increase orders.”
He added: “We trust this support will contribute to strengthening the future-focused partnership between the two countries.”
This financing follows PIF’s recent international sukuk issuance amounting to $3.50 billion, two green bond issuances at an aggregated value of $8.50 billion, as well as a $17 billion corporate loan in 2022.
