Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), is poised to issue notes through its first commercial paper (CP) programme, a move designed to diversify its funding sources.

The program, which enables CP issuance via offshore special purpose vehicles, includes both US and Euro CP sub-programs. It has secured the highest possible short-term credit ratings: P-1 from Moody’s and F1+ from Fitch.

The CP issuance is expected to boost the sovereign wealth fund’s short-term financing flexibility, PIF said on Monday, noting that it is a common cash management tool in global financial markets.

“The establishment of our CP programme 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,” said Fahad AlSaif, PIF’s Head of Global Capital Finance and Investment Strategy and Economic Insights.

(Writing by Cleofe Maceda; editing by Seban Scaria)

seban.scaria@lseg.com