Saudi Arabia’s Public Investment Fund (PIF) has established its first commercial paper (CP) programme, enabling the issuance of short-term notes in both US dollars and euros through offshore special purpose vehicles.
PIF said on Monday that the new programme is intended to enhance its short-term funding flexibility and is part of a broader effort to diversify its capital base. The CP structure is a common tool used by global institutions to manage short-term cash requirements and optimise liquidity.
The fund has secured top-tier short-term credit ratings for the programme, including P-1 from Moody’s and F1+ from Fitch Ratings. These ratings reflect a strong capacity to meet short-term financial obligations and provide assurance to investors participating in the CP market.
The CP notes will be issued under two sub-programmes, one in US dollars and the other in euros, providing access to international liquidity pools and institutional investor bases across major markets.
PIF’s Head of Global Capital Finance, Investment Strategy, and Economic Insights, Fahad AlSaif, said the move is aligned with the fund’s capital raising strategy, which aims to match funding tools with long-term investment priorities. He described the CP programme as a mechanism to support dynamic and resilient financing operations.
The move comes as PIF increases its activity in global debt markets to fund domestic and international investments. In 2023, the fund raised $5.5 billion through a triple-tranche green bond sale, following a $3 billion debut green bond issuance in 2022. It has also established a medium-term note programme and a sukuk programme to broaden its investor base.
As of 2024, PIF manages over $925 billion in assets and plays a central role in financing Saudi Arabia’s Vision 2030 diversification plan. The fund is backing large-scale projects, including NEOM, the Red Sea Global Resort development, and the Qiddiya entertainment city near Riyadh. It has also made international investments in sectors such as technology, electric vehicles, and sports.
By adding commercial paper to its funding mix, PIF joins a growing number of sovereign investors and state-owned entities using short-term debt markets for liquidity management. The structure offers flexibility in timing and tenor, typically attracting money market funds and institutional investors seeking low-risk, short-duration investments.
