Saudi Arabia’s sovereign wealth fund is planning to borrow about $10 billion by pledging some of its stakes in SoftBank Group Corp.’s technology investment vehicle, according to people familiar with the matter. The Public Investment Fund, which has been on an overseas acquisition spree recently, is speaking with investment banks about a margin loan backed by some of its investments in the $100 billion Vision Fund, the people said, asking not to be identified as the matter is private. While discussions with banks are ongoing, it may not materialize in a deal, and the fund may also decide against raising the loan, the people said.
PIF’s investment drive has seen it build stakes in some of the world’s largest companies since the start of the coronavirus pandemic. On Friday, it disclosed stakes in companies including Facebook Inc., Boeing Co. and Citigroup Inc. Other holdings include an investment in hotel owner Marriott International Inc.
PIF has targeted some of the companies hit hardest in the crisis, including cruise operator Carnival Corp. and hotel owner Marriott International Inc. It’s also broadened its natural resources exposure with stakes in Suncor Energy Inc. and Canadian Natural Resources Ltd, according to the filing, which outlined investments in nearly $10 billion worth of U.S. equities.