PIF completes $7bn inaugural murabaha credit facility
Public Investment Fund, Saudi Arabia's sovereign wealth fund has completed its first murabaha credit facility valued at $7 billion, as it continues to diversify its funding sources.
The facility is part of its 'medium-term capital raising strategy', PIF said in a statement on Monday. The structure is supported by a syndicate of 20 international and regional financial institutions.
The Murabaha is one of the most popular modes of Islamic financing, in which all parties agree to the cost and markup (profit margin) of an asset. It is also referred to as cost-plus financing.
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