PIF establishes first commercial paper program

Logo of Public Investment Fund (PIF)

The Public Investment Fund (PIF) announced the establishment of its commercial paper (CP) program, adding a new source of funding to its existing instruments.

The program, which allows CP issuance through offshore special purpose vehicles, is comprised of two sub-programs, a US CP program and a Euro CP program, the Kingdom’s sovereign wealth fund said in an emailed statement to Argaam today, June 23.

The program is rated P-1 by Moody’s and F1+ by Fitch, the highest possible ratings for such an initiative.

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.

PIF’s medium term capital-raising strategy is built on diversified funding solutions that include a range of instruments, such as bonds, sukuk and loans.

In October 2022, PIF was the world’s first sovereign wealth fund to issue a green bond including the world's first century green bond. This was later 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.