Saudi Arabia’s $925 billion Riyadh-based sovereign wealth fund, Public Investment Fund, has formed two further anchor investment partnerships — one with the Hong Kong Monetary Authority and the other with Mizuho Financial Group.
PIF said in a statement that it had signed a memorandum of understanding with the HKMA to work toward jointly anchoring a new $1 billion investment fund. The fund will invest in Hong Kong and Greater Bay area-connected manufacturing, renewables, financial technology and healthcare companies that are looking to internationalize their businesses and have access to investment opportunities in Saudi Arabia.
The second deal, reported by Bloomberg, saw PIF form a partnership with Japanese firm Mizuho to launch an ETF that invests in the kingdom’s stocks.
The index-linked ETF will mainly target institutional investors, according to documents seen by Bloomberg and confirmed by a Mizuho spokesperson. The ETF is set to be established in the fiscal year ending March 2025.
And there is also potential to list the fund on the Tokyo Stock Exchange in the future.
The ETF deal comes as two ETFs debuted in Saudi Arabia this week tracking shares in Hong Kong and China, Bloomberg also reported.
PIF said Oct. 30 that it had signed a memorandum of understanding to become an anchor investor in Brookfield Asset Management's new private equity fund.
