Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) has completed an $11bn international syndicated loan, marking the funds first borrowing.

The PIF announced the completion of the loan on 17 September, saying it was the “first step in its strategic, medium-term debt funding programme.”

In an issued statement, Yasir al-Rumayyan, managing director of PIF, revealed that the value of the loan was “higher than initially planned due to strong interest and favourable pricing. This is the first step in incorporating loans and debt instruments into PIF’s long-term funding strategy.”

The proceeds of PIF’s first loan will be used for general corporate purposes. The wealth fund announced in October 2017 that it was establishing corporate finance and treasury functions to manage its foray into debt markets.

Loans and debt instruments independently issued by PIF form one of the four funding sources outlined by the sovereign wealth fund in the 2018-2020 PIF Programme. The other sources of funding are: capital injections by the government; asset transfers from government; and retained investment returns.