(Reuters) – Saudi Arabia’s sovereign wealth fund is just not planning for and even contemplating a margin mortgage backed by its funding in SoftBank Group Corp’s Imaginative and prescient Fund, it stated on Sunday in response to a media report.
Bloomberg Information reported on Saturday that the $300 billion Public Funding Fund (PIF) was planning to borrow about $10 billion by pledging a few of its funding within the fund.
“PIF has ample liquidity and has not been engaged with anybody to boost margin loans towards its Imaginative and prescient Fund stake”, the sovereign wealth fund stated in an emailed assertion.
SoftBank’s funds are being squeezed after a disastrous guess on co-working agency WeWork and souring portfolio bets on start-ups.
The Japanese firm stated final month it anticipated the $100 billion Imaginative and prescient Fund to e book a lack of 1.eight trillion yen ($16.eight billion) because of the worsening efficiency of its tech bets, which is able to tip the group as an entire into its first loss for 15 years.
On Friday, PIF disclosed having purchased minority stakes in main American corporations together with Boeing
(Reporting by Kanishka Singh in Bengaluru and Saeed Azhar in Dubai;Modifying by Elaine Hardcastle)
— to kfgo.com