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PIF gets syndicated loan to boost Korean imports for Saudi projects: The Public Investment Fund (PIF) — Saudi Arabia’s sovereign wealth fund — has secured a loan of up to USD 5 bn from a syndicate of nine unnamed international banks to finance its imports from Korea for projects that are partially or fully run by the fund, according to a joint statement released yesterday. Information about the specific type of exports and projects the agreement is targeting as well the advisors on the transaction wasn’t made public.
The details: The lenders will initially disperse USD 3 bn, while the loan size can later be expanded to USD 5 bn, according to the agreement. This carries a door-to-door 13-year tenor and is covered by the Korea Trade Ins. Corporation (K-SURE) – the official export credit agency of South Korea. The financing by K-SURE is the first for the PIF by an export credit agency.
What they said: “Through this financial support, Korean companies have not only gained technological competitiveness but also financial competitiveness to increase orders,” said President of K-sure Inho Lee.
Background: K-sure and PIF agreed to strengthen collaboration back in 2022, with the goal of promoting Korean exports of goods and services ot projects funded by PIF, the statement said.
KSA + South Korean trade has been on a roll: The Kingdom’s trade with South Korea totalled USD 46.5 bn in 2022, according to Korea International Trade Association data cited by Nikkei Asia. South Korea’s exports to KSA rose 46.3% y-o-y to USD 4.9 bn in 2022, and imports to South Korea from KSA jumped 71.6% to USD 41.6 bn.
