Saudi PIF Weighs Securitizing Cash Flows and New Funding Options to Boost Investments
Key Facts
Saudi Arabia's Public Investment Fund is studying new funding options to increase its investments without injecting more of its own capital, at an early stage, according to three people familiar with the matter cited by Reuters. The options include securitizing cash flows from some portfolio companies, as well as selling stakes in mature assets and providing financing to smaller or newer companies. The sources said the fund is looking for ways to raise money and redirect it among its investments. These options give the fund alternatives for raising capital through existing assets and debt markets. The report did not identify specific deals or companies, and the plans remain under consideration.
Potential avenues include reducing stakes in listed companies, selling bonds to international investors and borrowing from export credit agencies. Reuters reported that tight liquidity among Saudi lenders and subdued stock-market listings could encourage the fund to broaden its funding strategy. This comes as the fund's board approved its 2026-2030 strategy on 15 April, focusing on maximizing financial returns, investment efficiency and greater private-sector participation. The strategy organizes investments into three portfolios: Vision, Strategic and Financial. The approach puts capital efficiency and investor participation at the center of portfolio management in the period ahead.
Talks to sell stakes could face obstacles over deal terms: sources said valuation gaps emerged in early discussions with investors, alongside disagreements over which party would retain ultimate control of an asset. Reuters did not attribute these obstacles to any specific company or asset. Meanwhile, the fund and Aramco announced on 1 November the completion of Aramco's acquisition of 49% of Humain, with the fund retaining a 51% stake. The fund said Aramco would provide Humain with about 9.9 billion riyals in cash during 2026. The deal is a publicly announced example of a partner joining one of the portfolio companies, but does not demonstrate that the other funding options under consideration have been carried out.
The new options follow debt issuances announced by the fund in 2025, including bonds worth 6 billion dollars and 1.65 billion euros under a multi-currency program, as well as sukuk worth 1.25 billion dollars, according to Fitch. Fitch also said the fund has a committed, undrawn 15 billion dollar revolving credit facility backed by 23 international financial institutions. On 3 November, the fund announced that it had secured credit facilities guaranteed by Italian export credit agency SACE, comprising a dollar tranche and a green euro tranche. A fund official said the partnership and participation of international banks reflected the "strength and depth of the funding strategy," describing it as flexible and aligned with long-term investment priorities. These instruments place borrowing and bonds among the funding channels the fund has used or announced, while securitization and stake sales remain options under consideration, according to the Reuters report.
The fund's published data for 2025 show revenue growth of 9% to 120 billion dollars, while net profit more than doubled to 17 billion dollars. The fund said assets under management exceeded 900 billion dollars and total annual shareholder returns since 2017 reached 5.8%. Fitch had estimated that assets under management rose 19% in 2024 to 3.4 trillion riyals, or 913 billion dollars, compared with 2.9 trillion riyals, or 766 billion dollars, at the end of 2023. These figures provide a backdrop to the portfolio's size and growth as the fund seeks financing to support its investments and improve capital efficiency. The report gave no timeline for approving the funding options or details on their implementation.