Saudi Arabia's sovereign wealth fund has raised approximately $3 billion in dual-tranche credit facilities guaranteed by Italian insurer Sace, deepening bilateral ties. The $1.8 billion and €1 billion green tranche were raised from a syndicate of 25 international banks, per a Public Investment Fund statement. Proceeds from the euro-denominated facility will fund eligible green projects.
The $905-billion PIF and Sace signed a memorandum of understanding last year to strengthen cooperation following Prime Minister Giorgia Meloni's visit to Saudi Arabia. Meloni met again with Crown Prince Mohammed Bin Salman in April to discuss domestic energy security. Saudi Arabia, the Arab world's largest economy, faces economic headwinds from the US-Iran war and its conflict with Tehran-backed Houthis in Yemen.
The Gulf state is executing a massive transformation plan requiring hundreds of billions. Sace previously guaranteed a $3 billion loan to Neom, now under review as Saudi reprioritizes large-scale projects. The PIF-backed FII Institute held a summit in Rome for European companies to explore opportunities.
Since 2017, the PIF has deployed €98 billion in Europe, including investments in Azimut Benetti and Pagani. Export credit agencies have allowed the wealth fund to diversify funding for Vision 2030.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing