RIYADH — Saudi Arabia’s Public Investment Fund (PIF) has signed financing agreements worth up to $24.5 billion with the Export-Import Bank of the United States (EXIM) and two World Bank Group institutions.
The agreements include a memorandum of understanding with EXIM establishing a framework for up to $15 billion in long-term financing for eligible PIF portfolio companies to procure U.S.-origin goods and services.
PIF also signed separate memorandums of understanding with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), worth up to $6 billion and $3.5 billion, respectively, to expand investment opportunities and support economic development in Saudi Arabia and other emerging markets.
According to PIF, the agreements build on its strategy of diversifying funding sources and strengthening partnerships with leading international financial institutions.
The EXIM agreement will explore opportunities across sectors including advanced technology, aerospace, infrastructure, future mobility, water security and critical minerals, with the aim of strengthening supply chains and promoting industrial and digital innovation.
PIF said the United States is its largest international market, with procurement by the fund and its portfolio companies totaling $65 billion since 2017, contributing an estimated $35 billion to U.S. gross domestic product.
Rasees AlSaud, Head of Financial Institutions and Investor Relations, Global Capital Finance at PIF, said the partnership with EXIM would deepen cooperation in strategic sectors while creating new opportunities for Saudi and U.S. companies to collaborate and exchange expertise in support of sustainable growth.
EXIM President and Chairman John Jovanovic said the agreement supports the bank’s “Buy American, Build the Future” framework by advancing American innovation in strategic industries while strengthening domestic manufacturing.
The MoU with IFC focuses on exploring co-financing opportunities in sectors including infrastructure, energy, transportation, tourism and healthcare. It also promotes knowledge exchange and encourages greater private-sector participation in projects undertaken by PIF portfolio companies.
Meanwhile, the agreement with MIGA will explore the use of credit enhancement guarantees to facilitate financing for PIF portfolio companies investing across the Middle East and North Africa, with a focus on decarbonization, innovative industries and high-value job creation.
AlSaud said the agreements with IFC and MIGA reflect PIF’s long-standing partnerships with major international financial institutions and will expand investment opportunities for the fund’s portfolio companies while contributing to Saudi Arabia’s Vision 2030 economic transformation goals.
Leave a comment