PIF Launches First Commercial Paper Program to Diversify Funding Sources

The Public Investment Fund (PIF) announced today the establishment of its commercial paper (CP) program, introducing a new source of funding alongside its existing instruments.
 According to a PIF press release, the program enables CP issuance through offshore special purpose vehicles and consists of two sub-programs: a US commercial paper program and a Euro commercial paper program. It holds the highest possible ratings for such initiatives, with a P-1 rating from Moody’s and an F1+ rating from Fitch.
 The CP issuances enhance PIF’s short-term financing flexibility and complement its long-term capital-raising efforts. CP is a common cash management tool in global financial markets, and the establishment of this program by PIF reflects its agile capital-raising strategy.
 Head of PIF's Global Capital Finance and Investment Strategy and Economic Insights Fahad Al-Saif said: “The establishment of our CP program reflects the continued strength and depth of PIF’s capital-raising strategy; one that is dynamic, resilient, and fit for purpose, aligning funding solutions with our long-term investment priorities.”
 The release added that PIF’s medium-term capital-raising strategy is built on diversified funding solutions, including a range of instruments such as bonds, sukuk, and loans. In October 2022, PIF became the first sovereign wealth fund globally to issue a green bond, which included the world’s first century green bond. This was followed by PIF’s inaugural sukuk issuance, priced at $3.5 billion. PIF is rated Aa3 by Moody’s with a stable outlook and A+ by Fitch, also with a stable outlook.
 PIF is one of the world’s most impactful investors, enabling the creation of key sectors and opportunities that help shape the global economy while driving the economic transformation of Saudi Arabia, according to the release.