Image: PIF
Saudi Arabia’s Public Investment Fund (PIF) has initiated a commercial paper (CP) program, unveiling a new short-term financing mechanism to enhance its existing funding options.
The sovereign wealth fund revealed that the new initiative includes two components: a US commercial paper program and a Euro commercial paper program, both issued through offshore special purpose entities.
The CP program has achieved top-tier ratings for commercial paper offerings, earning a P-1 rating from Moody’s and an F1+ rating from Fitch.
This program aims to bolster PIF’s short-term liquidity and cash management strategies, facilitating a proactive approach to capital acquisition. “The launch of our CP program signifies the robust and multifaceted nature of PIF’s capital-raising tactics; one that is agile, strong, and well-aligned with our long-term investment goals,” stated Fahad Al-Saif, head of PIF’s Global Capital Finance and Investment Strategy and Economic Insights.
The CP program aligns with PIF’s medium-term objectives
The introduction of this program is a key development in PIF’s medium-term capital-raising plan, which encompasses a diversified array of bonds, sukuk, and loans.
In October 2022, PIF became the first sovereign wealth fund in the world to issue a green bond, including the inaugural century green bond globally. This achievement was followed by its first sukuk issuance, raising $3.5 billion.
PIF maintains a long-term issuer rating of Aa3 with a stable outlook from Moody’s and an A+ rating with a stable outlook from Fitch.
As one of the most influential institutional investors worldwide, PIF plays a pivotal role in fostering the development of new sectors and economic opportunities on a global scale while spearheading the transformation of Saudi Arabia’s economy, as noted in the fund’s statement.
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