$6.8 billion… A memorandum of understanding between the Investment Fund and the British Export Finance Corporation
Sign United Kingdom and The Kingdom of Saudi Arabia.
The British Export Finance Authority will provide support of up to $6.8 billion for export credit to the Kingdom.
The Authority – under the memorandum of understanding – will enter into partnerships with the Public Investment Fund and its portfolio companies that will allow it to access many existing and future projects in the local market, providing many opportunities for suppliers based in the United Kingdom. To them, and enhances the attractiveness of their goods and services to the Public Investment Fund and its portfolio companies’ system.
The memorandum of understanding also establishes a framework for close cooperation between the Public Investment Fund and the British Export Finance Authority, which would enhance the exchange of commercial expertise and knowledge, and work together to identify mutually beneficial opportunities.
Diversifying sources of business. Financing
The agreement is in line with the Public Investment Fund’s strategy to diversify funding sources, through strong partnerships with prominent and pioneering international institutions, while enhancing the ability of its portfolio companies to access global markets, especially in light of the continued growth of these companies locally and internationally and attracting more international capital.
The memorandum also supports the efforts of the British Export Finance Corporation to empower exporters in the Kingdom. United Nations, and facilitating their contribution to Saudi Vision 2030 projects that seek to achieve economic transformation in the Kingdom.
The memorandum benefits from previous successful cooperation experiences, including the guarantee provided by the British Export Finance Authority, in favor of financing facilities worth $700 million on a Murabaha basis, obtained by the Six Flags theme park project in Qiddiya.
Benefiting from experiences International
Fahd Al-Saif, Head of the General Department of Global Investment Finance, and Head of the General Department of Investment Strategy and Economic Studies at the Public Investment Fund, said: "The MoU reflects the Public Investment Fund’s commitment to building and strengthening its partnerships with a wide range of leading global financial institutions"
He added: "This cooperation increases the ability of the Fund’s portfolio companies to benefit from international capital and expertise, and implement pioneering projects that contribute to advancing economic transformation and achieving sustainable growth, in line with Saudi Vision 2030."
Providing new supply contracts
Commenting on the signing, Tim Reid, CEO of the British Export Finance Authority, said: "Saudi Vision 2030 provides great economic opportunities for British companies, and through this historic signing, we are opening wide doors, through which valuable new supply contracts can be provided that will lead to significant economic growth in both countries."
He continued: "This partnership demonstrates the United Kingdom’s commitment to supporting British exporters to compete and win in the Saudi market, which is among the most vibrant markets in the world, especially in light of the Kingdom’s advanced infrastructure and high levels of innovation through which it shapes its future."
Shaping the Features of the Global Economy
The Public Investment Fund is considered among the most influential global investors, and works to enhance the development of sectors and new opportunities that contribute to shaping the global economy, achieving returns, and advancing the economic transformation in the Kingdom. The Fund holds a credit rating of 100%. "Aa3" With a stable outlook from global credit rating agency Moody’s, it also carries an A-Class rating "A+" From Fitch Ratings with a stable outlook.
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