Saudi Arabia’s PIF launches its first commercial paper program to enhance funding flexibility.
Saudi Arabia’s Public Investment Fund (PIF) today 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 U.S. CP program and a Euro CP program. 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 became the first sovereign wealth fund globally 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.
Source: Economymiddleeast
