Saudi PIF Rolls Out Global Commercial Paper Program

2025-06-24 05:35:37

(MENAFN) The Saudi Public Investment Fund (PIF) revealed on Monday the rollout of its inaugural commercial paper (CP) program, marking a strategic move to diversify its funding sources.

In a statement published on its official website, the sovereign wealth fund detailed that the new initiative will operate through offshore special-purpose vehicles and will include two distinct frameworks: one for U.S. commercial paper and another tailored for European markets.

According to the PIF, the launch introduces a fresh financing channel that broadens the fund’s toolkit for short-term borrowing. It aims to provide greater flexibility in managing liquidity needs while aligning with the fund’s broader strategy for long-term capital acquisition.

Commercial paper programs allow organizations—ranging from corporations to government-backed entities—to issue unsecured, short-term debt instruments. These are typically used to meet immediate financing demands.

The PIF, which manages the Kingdom of Saudi Arabia’s sovereign wealth, is among the largest such entities globally, with assets exceeding $900 billion.

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