Saudi Arabia’s PIF denies media report of loan backed by SoftBank investment

Yasir al-Rumayyan, governor of Saudi Arabia's Public Investment Fund speaks during a press conference in the eastern Saudi Arabian region of Dhahran on November 3, 2019.. (File photo: AFP)

Saudi Arabia’s sovereign wealth fund is not planning for or even considering a margin loan backed by its investment in SoftBank Group Corp’s Vision Fund, it said on Sunday in response to a media report.

Bloomberg News reported on Saturday that the $300 billion Public Investment Fund (PIF) was planning to borrow about $10 billion by pledging some of its investment in the fund.

“PIF has ample liquidity and has not been engaged with anyone to raise margin loans against its Vision Fund stake”, the sovereign wealth fund said in an emailed statement.
SoftBank’s finances are being squeezed after a disastrous bet on co-working firm WeWork and souring portfolio bets on start-ups.

Read more: Coronavirus: Saudi Arabia's PIF buys stakes in Boeing, Citi, Disney, Facebook

The Japanese company said last month it expected the $100 billion Vision Fund to book a loss of 1.8 trillion yen ($16.8 billion) due to the worsening performance of its tech bets, which will tip the group as a whole into its first loss for 15 years

On Friday, PIF disclosed having bought minority stakes in major American companies including Boeing, Facebook and Citigroup, giving it a portfolio of nearly $10 billion in US-listed stocks.

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Last Update: Wednesday, 20 May 2020 KSA 14:07 - GMT 11:07
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