RIYADH (The Thursday Times) — Saudi Arabia’s Public Investment Fund (PIF) has unveiled a new commercial paper (CP) programme aimed at diversifying its funding sources and enhancing short-term liquidity, in a move that underscores the sovereign wealth fund’s growing role in global capital markets.
The newly launched programme introduces two distinct components: a U.S. commercial paper programme and a Euro commercial paper programme, both issued through offshore special purpose vehicles. These instruments will serve as short-term financing tools, complementing PIF’s existing mix of bonds, sukuk, and syndicated loans.
In a statement, PIF confirmed that the CP programme has received the highest short-term credit ratings available — P-1 from Moody’s and F1+ from Fitch — reflecting strong market confidence in the fund’s creditworthiness and governance.
“The establishment of our CP programme 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,” said Fahad Al-Saif, Head of PIF’s Global Capital Finance and Investment Strategy and Economic Insights.
A new pillar in a multi-layered strategy
The launch of the commercial paper programme forms a core part of PIF’s broader mid-term strategy to maintain a flexible and diversified funding base. This strategy includes a variety of financing channels such as green bonds, conventional bonds, sukuk, and commercial loans.
PIF made headlines in October 2022 when it became the first sovereign wealth fund in the world to issue a green bond — which notably included the issuance of a century (100-year) green bond. That pioneering move was followed by a $3.5 billion debut sukuk issuance, further demonstrating the fund’s capital markets innovation and outreach.
The CP initiative is expected to enhance PIF’s ability to manage its short-term cash flows more efficiently, while also expanding its global investor base through access to international money markets.
Solid credit profile and global ambitions
PIF continues to maintain robust long-term credit ratings, holding an Aa3 rating with a stable outlook from Moody’s and an A+ rating, also with a stable outlook, from Fitch. These ratings affirm PIF’s financial strength, strategic significance, and credibility in the international financial community.
Recognised as one of the most influential institutional investors globally, PIF plays a key role in realising Saudi Arabia’s Vision 2030 economic diversification agenda. Its investment approach spans multiple sectors and regions, supporting the creation of new industries while transforming the kingdom’s economic landscape.
With over $700 billion in assets under management, the fund is increasingly positioning itself as a cornerstone of long-term global investment flows. The new CP programme is expected to further solidify its ability to raise flexible capital and execute on its ambitious domestic and international projects.
