SACE to finalize 1 Billion Euro Loan to Boost Italian-Saudi Business Relations

SACE, Italy’s Export Credit Agency, is pleased to announce a new “Push Strategy” financing in support of the Ministry of Finance of Saudi Arabia (MoF) represented by the Saudi National Debt Management Center (NDMC).  The transaction aims at providing 80% coverage for a loan of EUR 1 billion made available by a pool of international banks.

The international financial institutions involved in the transaction include: HSBC Bank Middle East Limited; Banco Bilbao Vizcaya Argentaria, S.A.; Banco Santander, S.A.; CaixaBank S.A.; and Crédit Agricole Corporate and Investment Bank. HSBC Bank Middle East Limited also acted as the ECA Coordinating Bank, while HSBC Bank plc performs the role of the Agent Bank. Linklaters acted as legal advisers to SACE and the lenders, while Gibson, Dunn & Crutcher LLP acted as legal advisors to MoF, and contributed to finalizing the transaction.

SACE's intervention aims to strengthen commercial and investment relations between the two countries, thus enhancing business opportunities for Italian exporters. This includes potential participation in large-scale projects planned by Saudi Arabia in the coming years, in line with its economic diversification objectives as per the Kingdom’s “Saudi Vision 2030” development plan.

The MoF has shown interest in the “Push Strategy” operational model, considering its privileged access to the Italian supply chain through business-matching activities. SACE's intervention is designed to foster business-matching opportunities in the coming years involving Italian companies in relevant sectors. This initiative seeks to facilitate increased exports from Italy.

The driver of these opportunities lies in the Vision 2030 program launched by the Saudi Arabian government. This program has the objective of diversifying the economy and boosting the country's competitiveness through extensive investments across sectors such as renewable energy, logistics, infrastructure, tourism and hospitality, manufacturing, and many others.

Thanks to these opportunities, SACE's projections indicate potential growth in Italian exports, which surpassed EUR 4 billion to Saudi Arabia in 2022 and could achieve a 15% increase in 2023, as well as an estimated 5% rise in 2024.