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Saudi sovereign fund, Public Investment Fund, has inked six memorandums of understanding (MoUs) valued to the tune of $50bn with several key Chinese financial institutions.
The MoUs were signed with the Agricultural Bank of China (ABC), Bank of China (BoC), China Construction Bank (CCB), China Export & Credit Insurance Corporation (SINOSURE) Export-Import Bank of China (CEXIM) and the Industrial and Commercial Bank of China (ICBC).
Aligned with the fund’s strategy to foster institutional partnerships globally, the agreements involve areas of cooperation, including enabling two-way capital flows through debt and equity.
PIF aims to enhance partnerships globally
Fahad Al Saif, PIF’s head of the Global Capital Finance Division and head of the Investment Strategy and Economic Insights Division, said: “The MoUs demonstrate PIF’s strong and deepening relationships with leading financial institutions and accentuate PIF’s commitment to enhancing partnerships globally.”
Al Saif was named the new head of the fund’s investment strategy and economic insights division in July.
Al Saif will develop the PIF’s overall investment strategy while maintaining his existing role as the head of the global capital finance division for the fund, according to a statement from PIF.
A Reuters report published in May stated that the fund aimed to focus on investments with a higher chance of success, after scaling back on some of its flagship multi-billion dollar mega projects due to rising costs.
To help diversify funding, it raised $5bn through a bond sale in January and $3.5bn from a sukuk in October, and plans further debt sales this year.
