Saudi Fund's $3B Deal Ties Green Finance to Italian Trade

Saudi Arabia’s Public Investment Fund has secured the equivalent of $3 billion in credit facilities guaranteed by Italy’s export credit agency, SACE. The financing will support procurement from suppliers and expand business cooperation with Italy. A state-backed fund, an export-credit agency and 25 international banks have joined forces. The stated purpose is more business between the two economies.

Credit for the procurement machine

The facilities comprise a $1.78 billion tranche and a €1.035 billion ($1.16 billion) green tranche, provided by a syndicate of 25 international banks, PIF said. Proceeds from the euro-denominated tranche will fund eligible green projects under the fund’s Green Finance Framework. PIF said the transaction fits its strategy to diversify funding sources and financial instruments.

The announcement doesn’t name the projects expected to receive the green tranche. Instead, it points to the framework’s eligibility rules and annual allocation and impact reports, which PIF says detail how the fund uses proceeds and their environmental impact. The green label comes with a reporting system; debt instruments and a bank syndicate provide the funding.

“Under its 2026-2030 strategy, PIF is providing its portfolio companies with greater access to global markets as these companies continue to grow in local and international markets and attract global capital,” said Rasees Al-Saud, head of financial institutions and investor relations, global capital finance, at PIF. Portfolio companies are the intended beneficiaries of that access. The machinery is designed to move capital and procurement through them.

An export agency opens the door

The financing builds on a memorandum of understanding signed in March 2025 to strengthen cooperation between Italian suppliers, PIF and its portfolio companies. The agreement envisaged SACE support for up to an additional $3 billion in project financing. PIF said at the time that its portfolio companies had already secured more than $3 billion in financing backed by the Italian agency.

SACE CEO Michele Pignotti described the transaction as a way to facilitate Italian exports and trade between the two markets. “The initiative is part of the SACE’s Push strategy, which aims to increase procurement of Italian goods and services through financial support and business engagement initiatives,” he said. The aim is clear: public export-credit support should increase purchases of Italian goods and services.

Saudi-Italian cooperation spans construction, manufacturing and technology. Italian companies are involved in developments such as Diriyah and industrial ventures including the planned Pirelli tire factory. In July 2025, Webuild announced approximately $600 million in additional works at Diriyah Square, bringing the combined value of its contracts awarded by Diriyah Co. to about $2 billion. The additional package covered more than 70 buildings and public spaces.

Green credentials, commercial scale

PIF and Italy’s Pirelli signed a joint-venture agreement in October 2023 for a Saudi tire factory involving approximately $550 million in investment and planned annual capacity of 3.5 million tires. PIF would own 75% of the venture; Pirelli would own the remainder and provide technical and commercial expertise.

PIF said it was the first sovereign wealth fund to issue a green bond and had also issued the first 100-year green bond. Its framework sets eligibility rules for projects financed through green bonds, sukuk and other debt instruments. According to the statement, Moody’s rates the fund Aa3 and Fitch rates it A+, both with stable outlooks.

The trade figures show the wider exchange. Saudi imports from Italy reached SR30.8 billion in 2025, up 2% year over year, while Saudi exports to Italy totaled SR13.9 billion, according to DataSaudi. Machinery, pharmaceuticals and electrical equipment were among the kingdom’s main imports. In August 2026, Saudi imports from Italy reached SR3 billion and exports to Italy totaled SR1.9 billion. At the FII PRIORITY Summit in Rome, PIF reaffirmed its commitment to exploring joint ventures and procurement opportunities linking European partners with the Saudi economy and its portfolio. It said it had deployed €98 billion in Europe since 2017. The institutions involved have made their direction plain: more credit, more procurement and more closely connected state-backed business.