NEOM recently announced the successful closing of a landmark export credit agency (ECA) financing transaction with Italy’s SACE, securing around $3 billion under a long-term multicurrency untied facility. The deal marks NEOM’s first corporate ECA financing and the largest untied financing ever guaranteed by SACE.
The deal with the Italian insurance and financial group that is fully owned by the Italian Ministry of Economy and Finance, will support various projects across NEOM and is backed by a syndicate of nine international banks: HSBC, Banco Bilbao Vizcaya Argentaria, Bank of China, Crédit Agricole CIB, Agricultural Bank of China, Citi, China Construction Bank, J.P. Morgan and Bank of America.
“This deal will support us in delivering our significant portfolio of developments and reflects the strong confidence that leading financial institutions worldwide place in NEOM. It advances the Kingdom’s aim of generating capital investment in line with Saudi Vision 2030, with foreign investment being instrumental in diversifying the economy,” stated Eng. Aiman Al-Mudaifer, acting CEO, NEOM.
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The partnership will enable NEOM to leverage supplies from Italian businesses, particularly SMEs, to support the project’s development across key sectors, including infrastructure, urban development, construction and transport.
To date, Italian suppliers and contractors have supported NEOM on a range of projects, with contracts worth $6.3 billion, and the deal aims to further strengthen and develop these important international business relationships.
“NEOM is committed to working with global partners who share our passion for visionary projects and initiatives that will advance human progress…This partnership with SACE and the consortium of leading international banks also creates strong ties with major Italian companies that will enhance international trade and investment flows,” added Al-Mudaifer.
SACE seeks Italian export growth
The SACE untied facility expands and diversifies NEOM’s existing funding pool, supporting its long-term financing requirements as NEOM moves forward in the development of major projects and regions, including THE LINE, Enowa, Oxagon, Trojena, Magna and the newly-opened luxury island destination, Sindalah.
“Opening new routes to ‘Made in Italy’ is a priority to allow long-term growth for Italian exports, matching their potential,” added Alessandra Ricci, CEO of SACE.
The announcement coincided with an official visit by Italy’s Prime Minister Giorgia Meloni to Saudi Arabia, where she and Crown Prince Mohammed bin Salman signed an agreement to establish the Saudi-Italian Strategic Partnership Council.
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SACE inks $6.6 billion deals in Saudi Arabia
In the framework of the Italian Government’s mission in Saudi Arabia, SACE announced that it is signing deals and agreements with prominent financial and business counterparties, for an overall value of $6.6 billion, to support Italian exports in Saudi Arabia as well as trade and investment relations between Italy and the Kingdom.
In addition to the deal with NEOM, SACE signed an agreement with the Saudi Electricity Company (SEC) to facilitate mutual business and investment opportunities, with a focus on sustainable and renewable energy projects.
SACE also signed agreements to provide a $100 million line of credit to ACWA Power in exchange for a commitment to create business matching opportunities with Italian companies in their respective areas of interest. SACE and ACWA Power have also documented a commitment to explore new opportunities and evaluate up to $500 million in support, with the goal of facilitating exports from Italy and promoting the internationalization of Italian companies.
Finally, it inked an agreement with the Arab Bank for Economic Development in Africa to cooperate in the context of the Mattei Plan for Africa, Italy’s development cooperation and investment programme to strengthen ties with the African continent.
