PIF secures $10bn from French export credit agency

Eliot Blondet/Abaca Press via Reuters

Saudi Arabia’s Public Investment Fund has signed an agreement with Bpifrance Assurance Export, a French export credit agency, to seek funding for up to $10 billion.

The five-year pact will focus on projects supporting Vision 2030 and is aligned with the fund’s strategy to grow build long-term global partnerships.

The agreement will unlock new opportunities for French and Saudi companies, as well as exchange knowledge and experience, said Rasees Al Saud, head of financial institutions and investor relations at PIF.

Denis Le Fers, general director of Bpifrance Assurance Export, said the pact will mutually benefit both countries by strengthening Franco-Saudi commercial relationships, increasing trade flows and developing opportunities for French companies.

The credit line will be available for PIF and its subsidiaries.

Last month, the sovereign wealth fund signed memorandums of understanding (MoUs) worth up to $52 billion with five Japanese banks encouraging two-way capital flows through debt and equity. 

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In August, PIF renewed a $15 billion credit facility with 23 global and regional banks for up to five years.  

Saudi Arabia approved its 2025 state budget in November, which estimates total revenues at SAR1.18 trillion ($314 billion) and expenditures at SAR1.28 trillion – resulting in a fiscal deficit of SAR101 billion ($26.9 billion).

Mohammed Al Jadaan, the country’s finance minister, said the government aims to expand strategic spending through 2025 on development and giga-projects, in line with Vision 2030 programmes.