The Public Investment Fund (PIF) launched its first commercial paper (CP) program, comprising a US CP and a Euro CP sub-programs, it said in a press release yesterday. The program, which permits CP issuance via offshore special-purpose vehicles, is rated P-1 by Moody’s and F1+ by Fitch. The timeline of the program was not disclosed.

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SOUND SMART- Commercial paper is a short-term debt instrument that companies or financial entities use to raise working capital by selling unsecured promissory notes. This instrument is commonly used to finance day-to-day operations.

Behind the CP program: The upcoming issuances under the program are expected to enhance PIF’s short-term financing flexibility and long-term capital-raising efforts, the statement said.

The sovereign wealth fund has been ramping up its debt issuances in 2025, closing a USD 1.25 bn sukuk issuance last month, which was 6.5x oversubscribed and received over USD 9 bn in orders. It also issued USD 4 bn in bonds in January, which was nearly 4x oversubscribed and had an order book of approximately USD 16 bn. Over the same month, the fund completed a USD 7 bn murabaha credit facility as part of its medium-term capital raising strategy.

What they said: “The establishment of our CP program 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,” PIF’s Head of Global Capital Finance Fahad Al Saif said.

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