Saudi Arabia-domiciled reinsurer, Saudi Reinsurance Co., is raising new capital via the issuance of new shares that will be purchased by Saudi Arabia’s Public Investment Fund (PIF), a sovereign wealth fund, according to a filing with the stock exchange.
On October 7th, Saudi Re signed a non-binding memorandum of understanding (MoU) with PIF. Under the agreement, PIF will subscribe to new cash shares in Saudi Re by way of capital increase while suspending preemptive rights of the current shareholders.