Saudi Arabia’s Public Investment Fund (PIF) recently announced the signing of five memorandums of understanding (MoUs) worth up to $51 billion with leading Japanese financial institutions.
The fund signed agreements with Mizuho Bank, Sumitomo Mitsui Financial Group, MUFG Bank, Japan Bank for International Cooperation (JBIC), and Nippon Export and Investment Insurance (NEXI).
“The MoUs demonstrate PIF’s robust and ever-deepening relationships with leading international financial institutions. This collaboration underscores PIF’s commitment to foster partnerships,” stated Rasees AlSaud, head of financial institutions and investor relations.
Greater global financial cooperation
As PIF expands its global footprint, the agreements with the leading Japanese financial institutions play a key role in the fund’s strategy to boost financial collaboration globally and enhance cooperation in finance, investment, and sustainable development. They cover several areas including encouraging two-way capital flows through both debt and equity.
As a global investor and catalyst of change, PIF actively partners with the most pioneering organizations across the world to accelerate their growth and transfer the technology and knowledge needed to build industry ecosystems of the future. Since 2017, PIF has established 95 companies and injects at least SAR150 billion into the local economy each year.
Through strategic investments and partnerships across the Saudi public and private sector, PIF is driving the transition to a more sustainable economy, and laying the foundations for local and international partners to invest in the economic and societal transformation of Saudi Arabia.
The agreements cover both PIF and portfolio companies, as well as Japanese companies and financial institutions.
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Key global partnerships
In a bid to further boost financial collaboration globally, PIF and the Hong Kong Monetary Authority (HKMA) also signed a memorandum of understanding to work towards jointly anchoring a new investment fund, with a target size of $1 billion. The MoU was signed at the FII 8th Edition in Riyadh.
Under the agreement, the fund aims to explore investment in manufacturing, renewables, fintech, and healthcare, supporting the localization in Saudi Arabia of companies connected to Hong Kong and the Greater Bay area. The new fund also aims to promote foreign direct investments via Hong Kong, providing a platform for companies to internationalize their businesses and have access to attractive investment opportunities in Saudi Arabia.
PIF also signed a non-binding MoU with Brookfield Asset Management, which will allow it to act as a strategic anchor investor for Brookfield Middle East Partners (BMEP). This new platform serves as Brookfield’s new private equity vehicle for investments in businesses in Saudi Arabia and the wider region.
BMEP will target $2 billion from a variety of investors and intends to target buyouts, structured solutions, and other investment opportunities across a range of strategic sectors. At least 50 percent of the capital will go to investments in Saudi Arabia and to leading international companies looking to expand in the local market, unlocking foreign direct investment into Saudi Arabia.
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