NEOM secures $3bn Italian Sace funding for key projects work
NEOM, the developer of Saudi futuristic city, has announced the successful closing of a landmark export credit agency (ECA) financing transaction, with Italy's export credit organisation Sace, securing approximately $3 billion under a long-term multicurrency untied facility.
The deal, which marks NEOM's first corporate ECA financing and the largest untied financing ever guaranteed by Sace, will support various projects across the mega development.
The funding is backed by a syndicate of nine prominent 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, said NEOM in a statement.
The partnership will enable NEOM to leverage supplies from Italian businesses, particularly SMEs, to support the project's development across key sectors, such as infrastructure, urban development, construction and transport (rail, road and maritime), it stated.
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, it added.
NEOM's Acting CEO Engineer Aiman Al Mudaifer said: "We are committed to working with global partners who share our passion for visionary projects and initiatives that will advance human progress. 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. 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," he added.
Sace CEO Alessandra Ricci said: "We are glad to play our part alongside NEOM in this cutting-edge project, which generates opportunities in a wide range of sectors for Italian SMEs and supply chains. Opening new routes to 'Made in Italy' is a priority to allow a long-term growth for Italian exports, matching their potential."
"Our Riyadh office supports Italian companies and their potential partners and counterparties, by providing experience and insurance financial solutions combined with the added value of a physical presence in the area," she stated.
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