New initiative to further diversify PIF’s funding sources and enhance liquidity.
The Public Investment Fund (PIF), one of the world’s largest and most impactful sovereign wealth funds, has announced the establishment of its inaugural commercial paper (CP) program. This strategic move marks another significant milestone in PIF’s efforts to diversify its funding sources, expand access to short-term liquidity, and maintain a resilient financial framework aligned with its long-term investment goals.
Part of PIF’s diversified funding strategy
The new CP program will allow PIF to issue Saudi Riyal-denominated instruments with maturities of up to one year. This initiative broadens the Fund’s existing funding toolkit, which already includes bonds, sukuk, and various debt instruments, and is designed to align with best practices in capital markets and prudent liquidity management.
Strengthens short-term financing capabilities
By tapping into the local money market, the CP program provides PIF with greater flexibility to manage working capital and optimize its capital structure, while reinforcing its financial strength as it continues to drive transformational projects across the Kingdom.
A PIF spokesperson emphasized that the launch of the CP program reflects the Fund’s ongoing commitment to innovation in financial management. “This program supports PIF’s strategic approach to building a diversified and sustainable funding base, which is essential to meeting our mandate of enabling economic development and sectoral growth,” the spokesperson said.
Supports Vision 2030 economic ambitions
This latest financial instrument further aligns with PIF’s broader objective of accelerating Saudi Arabia’s Vision 2030, driving growth across priority sectors, and positioning the Kingdom as a global investment hub.
As PIF continues to expand its global portfolio and domestic impact, this first-of-its-kind commercial paper program demonstrates the Fund’s ability to adapt to changing market dynamics and reinforces its leadership in institutional finance within the region.
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