Saudi's PIF launches commercial paper programme to diversify funding sources
Saudi Arabia's Public Investment Fund (
According to a statement from the sovereign wealth fund, the new program consists of two sub-programmes: a US commercial paper programme and a Euro commercial paper programe, issued through offshore special purpose vehicles.
It has secured the highest possible ratings for commercial paper initiatives — P-1 from Moody's and F1+ from Fitch.
The CP programme is designed to enhance PIF's short-term liquidity and cash management flexibility, supporting its dynamic approach to capital raising. '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 Al-Saif, head of PIF's Global Capital Finance and Investment Strategy and Economic Insights.
Programme part of PIF's mid-term strategy
The launch marks the latest step in PIF's medium-term capital-raising strategy, which includes a diversified mix of bonds, sukuk and loans.
In October 2022, the fund became the first sovereign wealth fund globally to issue a green bond, which included the world's first century green bond. That milestone was followed by its inaugural sukuk issuance, raising $3.5bn.
PIF holds a long-term issuer rating of Aa3 with a stable outlook from Moody's, and an A+ rating, also with a stable outlook, from Fitch.
Recognised as one of the world's most influential institutional investors, PIF plays a central role in enabling the creation of new sectors and economic opportunities globally while driving the transformation of Saudi Arabia's economy, the fund said in the statement.
Read-
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
22 minutes ago
- The National
Crypto funds intended for Hamas seized by US
Some $2 million in cryptocurrency assets intended for Hamas has been seized by the US government, according to recently unsealed court forfeiture documents from the US Department of Justice. According to court filings, the digital currency was held in Tether and Binance accounts connected through BuyCash, a 'Gaza-based money transfer business' allegedly involved in helping to finance Hamas. 'Terrorist organisations like Hamas and their affiliates rely on shadowy financial networks to fund their deadly operations,' US Attorney General Pamela Bondi said. 'By seizing millions in cryptocurrency, the Justice Department is aggressively dismantling the financial infrastructure of terrorism and refusing to allow our digital currency platforms to become safe havens for terrorist financing.' The court filings allege that a man named Ahmed M M Alaqad, a partial owner of the BuyCash operation, is also suspected of supporting ISIS and Al Qaeda, among other groups. Unsealed court documents accuse him of 'materially supporting Hamas' after the group's attack on Israel in October 2023. According to the DoJ, the specific method of transferring funds via digital assets likely resulted in Hamas previously receiving as much as $4 million. 'These types of money transfers are a classic money laundering technique, as they intend to disguise the nature, location, ownership, and control of the funds being transferred,' read the unsealed court filings. Despite growing enthusiasm for crypto, scepticism still abounds. Unlike fiat currencies, crypto mostly lacks an overall regulatory apparatus and is largely decentralised, making it appealing to groups with nefarious intentions. In May, a man in the US was sentenced to more than 30 years in prison after a court found him guilty of converting $185,000 to cryptocurrency and transferring it to ISIS. In March, an investigation originating from the FBI's field office in New Mexico has led to the seizure of $201,400 in cryptocurrency assets that was intended to finance Hamas.
Khaleej Times
3 hours ago
- Khaleej Times
ADQ completes acquisition of majority stake in Aramex
ADQ, an active sovereign investor focused on critical infrastructure and global supply chains, announced on Tuesday that it has completed its acquisition of logistics provider Aramex. Adq said in a statement that the voluntary tender offer for Aramex, submitted by its wholly owned indirect subsidiary Q Logistics Holding LLC, has become unconditional. ADQ will now become the majority shareholder in Aramex, with an ownership of 63.16 per cent of shares when combined with the shareholding held by AD Ports Group, in which ADQ holds a majority stake. This follows the receipt of all required antitrust and foreign direct investment regulatory approvals, as well as statutory exemptions and waivers from relevant governmental authorities within and outside the UAE, along with the satisfaction (or waiver) of all other conditions to the offer. The acquisition of a controlling stake in Aramex strengthens ADQ's position in the services layer of the logistics ecosystem, which includes express delivery, freight forwarding, third-party logistics, and warehousing. These functions are critical to enabling seamless trade flows and linking transport infrastructure to end users. With operations in over 65 countries, a leading trucking network in the GCC, and 800,000 sqm of global warehousing, Aramex brings scale, capabilities, and geographic reach. Its integration into ADQ's portfolio accelerates the development of a fully integrated, multimodal logistics platform that supports regional trade and economic growth. Mansour AlMulla, Deputy Group Chief Executive Officer of ADQ, commented: 'ADQ's majority shareholding in Aramex marks a strategic step toward advancing our vision to build a globally integrated logistics platform anchored in the UAE. Aramex brings strong capabilities and operational depth that complement our existing investments across air, sea, and land infrastructure. Its addition enhances the services layer of the logistics value chain and supports the development of end-to-end trade and supply chain solutions. We believe Aramex is well positioned to unlock long-term value through greater integration with ADQ's broader portfolio, and we are confident in its ability to deliver sustainable growth.' Aramex will become part of ADQ's Transport & Logistics cluster, which plays a central role in advancing multimodal connectivity and reinforcing Abu Dhabi's position as a global transport and logistics hub. The payment of consideration to Aramex Shareholders is to take place on July 25, and Aramex Shares will be registered in the name of Q Logistics Holding LLC the same day.
Khaleej Times
3 hours ago
- Khaleej Times
Dubai realty breaks records in Q2 despite cooling prices
Dubai's real estate sector delivered a record-breaking performance in the second quarter of 2025, with surging transaction volumes and resilient investor appetite, even as price growth showed signs of deceleration and affordability constraints began to surface. The market's dynamism was underpinned by strong off-plan sales, sustained demand for office and logistics space, and proactive government initiatives to boost homeownership. According to ValuStrat's Q2 research, property sales in Dubai hit new highs with nearly 37,000 off-plan transactions, averaging over Dh3.1 million per unit. Ready home sales also rose by 10.4 per cent from the previous quarter, registering 13,700 title deed transactions with an average price of Dh2.7 million. This momentum was particularly driven by robust activity in April and May. The ValuStrat Price Index (VPI) reflected continued but moderated capital appreciation. Apartment prices rose 19.1 per cent year-on-year, compared to 23.4 per cent in the same period last year. Villas saw a 28.7 per cent annual gain, also slower than the 33.4 per cent growth recorded in 2024. The VPI for apartments reached 188 points, and for villas, it climbed to 220 points — more than double the Q1 2021 baseline. Despite increasing supply, with 17,500 new homes completed in the first half and 66,596 units expected to be delivered in 2025, demand continues to outstrip supply in key segments. ValuStrat's head of real estate research, Haider Tuaima, noted that the elevated transaction activity highlights strong market confidence, though the impact of upcoming supply on pricing dynamics warrants close monitoring in the second half of the year. Rental growth, too, appears to be moderating. Apartment asking rents rose by 1.2 per cent quarterly and 7.2 per cent annually, with average annual rents at Dh95,500. Villa rents remained stable on a quarterly basis but were up 4.8 per cent year-on-year, averaging Dh428,000 annually. The overall VPI for residential rents rose by 1 per cent quarter-on-quarter and 6.2 per cent annually to reach 200.3 points. The office segment continued to show remarkable strength amid a supply-constrained environment. Capital values for office space rose 4.9 per cent quarter-on-quarter and 23.7 per cent year-on-year, compared to a 31.7 per cent annual rise in 2024. The banking, finance, and tech sectors are the major demand drivers. CBRE noted that average office rents in Dubai jumped more than 20 per cent year-on-year, with occupancy nearing full capacity in prime business districts. CBRE also reported a surge in residential transaction volumes, which climbed 23 per cent year-on-year in H1 2025. The total value of residential sales reached Dh270 billion. The launch of Dubai's First-Time Home Buyer Programme, which offers incentives such as flexible payment plans and preferential pricing, is expected to further encourage end-user demand and widen homeownership in the emirate. In terms of economic context, the UAE's GDP is forecast to grow 5.1 per cent in 2025, up from 3.8 per cent in 2024. This economic expansion is backed by recovering oil output, strong non-oil sector performance, and a resilient tourism sector. Dubai saw a 7 per cent year-on-year rise in international visitors between January and May, reinforcing the strength of the hospitality and retail segments. The industrial and logistics market is also flourishing. ValuStrat reported 16.2 per cent annual and 4.1 per cent quarterly capital gains for logistics warehouses, driven by sustained demand and high occupancy rates. CBRE added that strong rental growth and landlord-favorable market conditions are attracting heightened investor interest in Grade A industrial assets, signaling potential for more liquidity and development in the sector. In Abu Dhabi, the property market is showing parallel momentum. Apartment values rose by 18 per cent year-on-year, while villa prices gained nearly 14 per cent. The capital's office market is also seeing increased traction from international corporates, with occupancy and rents on the rise. Matthew Green, head of research for Mena at CBRE, attributed the UAE's real estate resilience to its diversified economy and progressive policy frameworks. 'The country continues to attract high-net-worth individuals, bolster foreign direct investment, and lead in innovation — all of which reinforce demand across residential, commercial, and industrial segments,' he said. Real estate market experts believe that with strategic government initiatives, strong demographic and investor fundamentals, and a proactive approach to urban development, Dubai's real estate market is poised to sustain its momentum through the remainder of 2025 — even as it gradually transitions from breakneck growth to more sustainable long-term expansion.
