Key Takeaways
- • Saudi Arabia's sovereign wealth fund PIF raised $3 billion through dual-tranche credit facilities guaranteed by Italy's export credit agency SACE, according to a joint statement from the two firms on Tuesday, November 3.
- • The facilities comprise a $1.78 billion tranche and a €1.04 billion ($1.16 billion) green tranche, building on a memorandum of understanding signed with SACE last year.
- • The transaction is part of PIF's effort to diversify its funding sources as it finances Saudi Arabia's economic transformation plan, which aims to reduce dependence on oil revenue.
- • The deal is expected to expand trade and create procurement opportunities for Italian suppliers within PIF's ecosystem.
Summary
Saudi Arabia's Public Investment Fund (PIF), the kingdom's sovereign wealth fund with more than $900 billion in assets, has raised $3 billion from dual-tranche credit facilities guaranteed by Italy's export credit agency SACE, the two institutions said in a joint statement on Tuesday, according to Reuters.
The facilities consist of a $1.78 billion tranche and a €1.04 billion ($1.16 billion) green tranche. The financing builds on a memorandum of understanding PIF and SACE signed last year. Reuters reported the conversion at $1 = 0.8937 euros.
The PIF is the vehicle leading Saudi Arabia's economic transformation plan, which seeks to cut the country's dependence on oil revenue by investing hundreds of billions of dollars in sectors including tourism and technology. The fund has been exploring various funding avenues, including debt markets, and the SACE-backed facilities reflect that diversification.
In the joint statement, the parties said the transaction will further expand trade and create new cooperation opportunities within PIF's ecosystem, including procurement of goods and services from Italian suppliers.
The facilities consist of a $1.78 billion tranche and a €1.04 billion ($1.16 billion) green tranche. The financing builds on a memorandum of understanding PIF and SACE signed last year. Reuters reported the conversion at $1 = 0.8937 euros.
The PIF is the vehicle leading Saudi Arabia's economic transformation plan, which seeks to cut the country's dependence on oil revenue by investing hundreds of billions of dollars in sectors including tourism and technology. The fund has been exploring various funding avenues, including debt markets, and the SACE-backed facilities reflect that diversification.
In the joint statement, the parties said the transaction will further expand trade and create new cooperation opportunities within PIF's ecosystem, including procurement of goods and services from Italian suppliers.
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