Saudi Arabia’s Public Investment Fund (PIF) is looking at ways to expedite debt sales or secure bank loans to finance its trillion-dollar economic transformation drive, according to a media report.

The sovereign wealth fund may also arrange equity offerings in its portfolio companies, Bloomberg reported, citing people familiar with the matter.

The move comes as the fund’s cash reserves dwindled to $15 billion as of September, marking the lowest level since 2020.

The $940 billion wealth fund is cautious of draining too much liquidity from the local banking system, Bloomberg said, citing sources.

In addition, PIF is encouraging its subsidiaries to rely on dollar borrowings where feasible to allow local banks to focus on financing real estate projects in the country, the report said.

Furthermore, the PIF plans to issue bonds frequently to set up a yield curve for its subsidiaries, which will serve as a benchmark for pricing their own debt sales. The fund plans to regularly access debt markets for a few billion dollars at various durations.

The fund has already issued two separate bonds to raise $7 billion this year.

The PIF has offered stakes in oil drillers ADES Holding and Arabian Drilling, boosting IPO activity in the Kingdom. The fund is preparing medical procurement firm Nupco and Saudi Global Ports Co. for share sales this year, the report noted.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)