Saudi PIF in Talks for $3.1bn Loan with Italy's SACE Backing
Deal News | Feb 06, 2025 | Zawya
Saudi Arabia's Public Investment Fund (PIF) is engaging in discussions with SACE, Italy's insurer and export credit agency, to secure $3.1 billion in loan guarantees. Should an agreement conclude successfully, SACE will provide these guarantees to international banks financing the sovereign fund. This negotiation follows the visit of Italian Prime Minister Giorgia Meloni to Saudi Arabia, during which $10 billion worth of agreements were established. One notable deal was a $3 billion financing agreement for the NEOM project, confirmed as part of a multicurrency untied facility backed by SACE. Trade between the two nations has reached $10.80 billion in 2023, with Saudi imports from Italy valued at $5.9 billion and exports at $4.9 billion, including $737 million in non-oil goods.
Sectors
- Finance
- International Trade
Geography
- Saudi Arabia – The Public Investment Fund (PIF) is based in Saudi Arabia and is the primary subject of the loan negotiations.
- Italy – SACE, the Italian insurer and credit agency, plays a crucial role in providing loan guarantees.
Industry
- Finance – The article discusses loan agreements and financial guarantees involving international banks and sovereign funds.
- International Trade – The discussion involves trade relations and exchanges between Saudi Arabia and Italy, highlighting bilateral financial agreements.
Financials
- 10.8 billion – Total trade exchange volume between Saudi Arabia and Italy in 2023.
- 3.1 billion – Amount of loan guarantees sought by Saudi PIF from SACE.
- 10 billion – Value of agreements signed following the Italian Prime Minister's visit to Saudi Arabia.
- 3 billion – Value of the financing agreement for the NEOM giga project.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Public Investment Fund (PIF) | Target | Government | Saudi Arabia's sovereign wealth fund engaged in securing a loan with international banks. |
| SACE | Loan Guarantor | Company | An Italian insurer and export credit agency providing loan guarantees to international banks. |
| Group of International Banks | Lenders | Companies | Banks involved in lending $3.1 billion to the Public Investment Fund with guarantees from SACE. |
| Giorgia Meloni | Influencer | People | Italian Prime Minister whose visit catalyzed the agreement negotiations between Italy and Saudi Arabia. |