Saudi, Chinese financial sectors preparing $50bn project

By Andrei Skvarsky.

Saudi Arabia’s PIF sovereign wealth fund has signed memorandums of understanding (MoUs) with five major Chinese banks and China’s export and credit insurance agency in laying the basis for a project of up to $50bn to involve debt and equity transactions.

The project would consist of deals addressing “areas such as two-way capital flows through both debt and equity”, PIF (the Public Investment Fund) said in a statement.

PIF’s MoU counterparties are the Agricultural Bank of China (ABC), Bank of China (BoC), China Construction Bank (CCB), Export-Import Bank of China (CEXIM), the Industrial and Commercial Bank of China (ICBC) and China Export & Credit Insurance Corporation (Sinosure).

China is Saudi Arabia’s biggest trading partner and crude oil customer, according to Saudi-based Gulf Research Center.

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