Saudi investment fund builds a portfolio of deprecated companies
Saudi Arabia’s National Wealth Fund announced its intention to borrow almost $10 billion from banks. At the moment, the organization is negotiating, and is ready to provide its own assets to the Vision Fund, which belongs to Masayoshi Son, the head of SoftBank, to secure the loan.
Since the beginning of the pandemic, the Saudi fund has been successfully increasing assets. It already owns part of the shares of Facebook, Boeing, and Citigroup. It needs liquidity to continue buying securities from collapsed companies. Yasser Al-Rumayyan, fund manager, confirmed that the organization intends to use all the opportunities presented by the financial crisis. The foundation focused on airlines, energy and entertainment organizations.
It is also known that with the aim to expand its global investment portfolio, the Public Fund bought out shares of the cruise operator Carnival Corp, as well as the hotel chain Marriott International Inc. In addition, the organization included securities of energy companies Energy and Canadian Natural Resources in its portfolio.
Saudi Arabia Public Fund is the lead investor in Vision Fund. It has already invested about $45 billion in it, and also bought out the shares of Uber, the sensational startup WeWork, as well as the Oyo Hotels chain. At the moment, the Masayoshi Sona fund is suffering large losses, however, the offer of the Saudi investment organization can certainly be attractive to banks, since they will be able to earn on fees associated with structured financing.