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Exclusive: Softbank's Saudi-backed Vision Fund to raise $4 billion in debt

Reuters  |  LONDON 

By Afanasieva

(Reuters) - SoftBank's is raising $4 billion in debt to help finance acquisitions and has hired and to work on the deal, a presentation seen by said.

The transaction would be the first test of debt investors' appetite for the Saudi-backed fund since the crisis triggered by the murder of Jamal Khashoggi, a critical of Saudi authorities.

Softbank's $98 billion has become one of the primary funding vehicles for companies around the world. provided $45 billion for the fund, and unease over Softbank's ties to the kingdom has weighed on the Japanese company's shares.

Investors, which include other sovereign wealth funds such as Abu Dhabi's Mubadala, have a period of time to provide funds for a given acquisition from their undrawn commitment.

The $4 billion credit facility outlined at a meeting at the Ritz in on Thursday would bridge that gap, allowing the fund to swoop in quickly.

The SoftBank Vision Fund, whose investments include ride-hailing company and shared-office space firm WeWork, declined to comment. and did not immediately respond to requests for comment.

PIF and are not providing a formal, legal guarantee for the loan, but the attendance of senior officials from the funds at the meeting indicated implicit support.

Earlier this year PIF raised $11 billion in a bid to boost its firepower to finance the kingdom's economic transformation plans. Debt raising at the is part of a plan to start leveraging up the PIF's investment.

Corp on Monday reported a surge in second-quarter profit, helped by the rising value of its investments.

said on Monday it was still too soon to launch the second Vision Fund 2.0.

(Reporting by Afanasieva, editing by Louise Heavens)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 09 2018. 23:05 IST