Saudi Arabia’s Public Investment Fund (PIF) has launched its first commercial paper (CP) program, advancing efforts to diversify funding sources and strengthen short-term liquidity management.

The program includes U.S. and Euro-denominated sub-programs and enables PIF to issue short-term debt through offshore special-purpose vehicles. Commercial papers are commonly used in global markets to raise short-term capital, offering faster access to liquidity than traditional loans. The move reflects PIF’s evolving investment approach and supports its broader capital-raising strategy.

The program has received the highest short-term credit ratings—Prime-1 from Moody’s and F1+ from Fitch, highlighting the fund’s strong financial standing.

Moody’s noted that the CP programs will operate under newly established vehicles, CPDE Investment Co. and CPNL Investment Limited. The agency described PIF’s liquidity profile as “excellent,” supported by $28 billion in cash reserves and substantial undrawn credit lines.

The U.S. commercial paper program will support maturities of up to 397 days, while the Euro program covers up to 364 days. Proceeds will be used for general corporate purposes.

Fahad Al-Saif, Head of Global Capital Finance and Investment Strategy and Economic Insights at PIF, said the CP program reinforces the fund’s adaptive financial model.

“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,” he said.

PIF has consistently driven financial innovation, becoming the first sovereign wealth fund to issue a green bond in 2022, including a landmark century bond, followed by a $3.5 billion sukuk issuance. As Saudi Arabia’s main investment arm, it plays a central role in Vision 2030, having established 103 companies since 2017 to support job creation, economic diversification, and sustainable growth.