Saudi sovereign fund may turn to bank loans to finance its investments

London

SAUDI Arabia's sovereign wealth fund, which aims to become a US$2 trillion investment giant, is considering borrowing from banks for the first time as it seeks investments in the kingdom and abroad, according to people familiar with the matter.

The Public Investment Fund, or PIF, has held talks with local and international banks and could raise about US$5 billion this year, some of the people said, asking not to be identified because the information is private. No final decisions on timing or size have been made and the PIF may instead turn to government financing, the people said.