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NEOMs first corporate export credit agency-backed financing is supported by a syndicate of 9 international banks Italian export credit agency SACE has guaranteed $3 billion financing agreement for Saudi giga project NEOM under a multicurrency untied facility. NEOMs first corporate ECA-backed financing was secured through a syndicate of nine international banks, including HSBC, Banco Bilbao Vizcaya Argentaria, Bank of China, Crédit Agricole CIB, Agricultural Bank of China, Citibank, China Construction Bank, JP Morgan Chase Bank, and Bank of America, as announced in a press statement by SACE last week. The agreement 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), the statement said. It added that the untied facility from SACE expands and diversifies NEOM’s existing funding pool, supporting its long-term financing requirements for the development of major projects and regions – including The Line, Enowa, Oxagon, Trojena, Magna and the newly-opened luxury island destination, Sindalah. Agreements with SEC and BADEA SACE has signed an MOU with Saudi Electricity Company (SEC) to explore providing credit guarantees to the utility to support sustainable projects related to Saudi Arabias electrical system development, and fostering business and investment opportunities, including Engineering, Procurement and Construction (EPC) and Operations & Maintenance (O&M) services involving Italian companies. The ECA also signed a strategic agreement with the Arab Bank for Economic Development in Africa (BADEA) under Mattei Plan for Africa, Italys Africa-focussed development and investment programme. The agreement focuses on identifying cooperation opportunities and developing joint initiatives to promote collaboration between companies from BADEA member countries and Italy. Additionally, the Agency signed $600 million in agreements with ACWA Power to support renewable energy opportunities in Africa and Central Asia, with a focus on boosting Italian exports, particularly from SMEs. A SACE press release noted that the total value of its agreements with Saudi financial and business counterparties stood at a combined $6.6 billion. |
