Saudi wealth fund PIF said to seek bridge loan of up to $8b

Late evening sunlight is seen reflected off the Kingdom Tower in Riyadh, Saudi Arabia, on Thursday, Dec. 1, 2016. Photographer: Simon Dawson/Bloomberg

Saudi Arabia’s sovereign wealth fund has started preliminary talks with banks to raise a loan expected to be between $5 billion and $8 billion as it seeks funding for new investments to diversify the kingdom’s economy, people familiar with the matter said.

The Public Investment Fund, or PIF, is looking for a bridge loan that will be fully underwritten by lenders and would be repaid with proceeds from the $69.1 billion sale of its stake in Saudi Basic Industries Corp. to Saudi Aramco, the people said, asking not to be identified because the information is private. Talks with banks are still at an early stage and the final size of the loan will depend on their response, the people said.

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