Saudi Arabia's sovereign wealth fund plans to borrow about $10 billion by pledging some of its investment in SoftBank Group Corp's Vision Fund, Bloomberg News reported https://www.bloomberg.com/news/articles/2020-05-16/pif-said-to-seek-10-billion-loan-pledging-vision-fund-stakes?sref=DOTC0U32 on Saturday.
The report comes a day after the $300 billion Public Investment Fund (PIF) disclosed its stakes in major US companies including Boeing, Facebook and Citigroup .
The wealth fund is in talks with investment banks regarding a margin loan backed by some of its investments in Vision Fund, the report said, citing sources.
PIF's decision to pledge stake happens amid time when SoftBank's finances are being squeezed after a disastrous bet on co-working firm WeWork and souring portfolio bets on startups.
Softbank said last month it expected the $100 billion Vision Fund to book a loss of 1.8 trillion yen due to the worsening performance of its tech bets, which will tip the group as a whole into its first loss for 15 years.
PIF did not immediately respond to a request for comment.
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