NEOM Secures $3 Billion SACE Financing for Saudi Giga Project
Deal News | Jan 28, 2025 | Zawya
Italian export credit agency SACE has agreed to guarantee a $3 billion financing deal for Saudi Arabia's NEOM project through a multicurrency untied facility with a syndicate of nine international banks, including HSBC and Citibank. The deal represents NEOM's first corporate ECA-backed financing, allowing it to leverage supplies from Italian SMEs for development in infrastructure, urban development, and transport. This agreement expands NEOM's funding pool to support major projects and regions such as The Line and Sindalah. Additionally, SACE has signed memorandums with Saudi Electricity Company to explore credit guarantees for sustainable projects and with the Arab Bank for Economic Development in Africa under Italy's Mattei Plan. This includes $600 million in deals with ACWA Power aimed at renewable energy projects in Africa and Central Asia, focusing on increasing Italian exports.
Sectors
- Infrastructure Development
- Financial Services
- Renewable Energy
Geography
- Saudi Arabia – The location of the NEOM project which is benefitting from the financing.
- Italy – Home country of SACE and Italian companies involved in exporting supplies for NEOM.
- Africa – Target region for renewable energy projects and development agreements facilitated by SACE.
- Central Asia – Region targeted for renewable energy projects supported by SACE agreements.
Industry
- Infrastructure Development – The financing supports development in infrastructure, urban construction, and transport for the NEOM project.
- Financial Services – Involvement of a syndicate of international banks providing the financing for the NEOM project.
- Renewable Energy – SACE's agreements include support for renewable energy projects in Africa and Central Asia.
Financials
- $3 billion – The financing amount guaranteed by SACE for the NEOM project.
- $600 million – Agreements with ACWA Power to support renewable energy opportunities.
- $6.6 billion – Total value of SACE's agreements with Saudi financial and business counterparties.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| SACE | Guarantor | Company | Italian export credit agency guaranteeing the financing for the NEOM project. |
| NEOM | Target Company | Company | Giga project in Saudi Arabia benefitting from the financing. |
| HSBC | Syndicate Bank | Company | One of the international banks providing financing for the NEOM project. |
| Citibank | Syndicate Bank | Company | One of the international banks providing financing for the NEOM project. |
| Saudi Electricity Company (SEC) | Partner | Company | Partner for potential credit guarantees for sustainable projects. |
| Arab Bank for Economic Development in Africa (BADEA) | Partner | Company | Partner for agreements under Italy's Mattei Plan for Africa. |
| ACWA Power | Partner | Company | Partner in $600 million agreements for renewable energy projects. |