RIYADH: Saudi Arabia’s Public Investment Fund has raised the equivalent of $3 billion in credit facilities, guaranteed by Italy’s export credit agency SACE to support procurement from suppliers and expand business cooperation with the European country. The financing comprises 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 in a statement. The Kingdom has been seeking to strengthen its economic ties with Italy as part of wider efforts to attract foreign investment, and cooperation has included construction, manufacturing and technology, with Italian companies involved in developments such as Diriyah and industrial ventures including the planned Pirelli tire factory. “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. Proceeds from the euro-denominated tranche will be allocated to eligible green projects under the fund’s Green Finance Framework. The transaction forms part of PIF’s strategy to diversify its funding sources and financial instruments. Italian partnerships The facilities build on a memorandum of understanding signed in March 2025 to strengthen cooperation between Italian suppliers, PIF and its portfolio companies. That agreement envisaged SACE support for up to an additional $3 billion in project financing. At the time, PIF said its portfolio companies had already secured more than $3 billion in financing supported by the Italian agency. Michele Pignotti, CEO of SACE, said the transaction was intended 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 announcement follows the FII PRIORITY Summit in Rome, where PIF reaffirmed its commitment to exploring joint ventures and procurement opportunities linking European partners with the Saudi economy and its portfolio. The fund said it had deployed €98 billion in Europe since 2017. Italian companies have already secured substantial work on Saudi developments. 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. Manufacturing is another area of cooperation. 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.   The agreement provided for PIF to hold 75 percent of the venture, with Pirelli owning the remainder and supplying technical and commercial expertise. Green financing 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 Green Finance Framework sets eligibility rules for projects financed through green bonds, sukuk and other debt instruments. The fund publishes annual allocation and impact reports detailing how the proceeds are used and their environmental impact. PIF holds an Aa3 rating from Moody’s and an A+ rating from Fitch, both with stable outlooks, according to the statement. Saudi Arabia’s imports from Italy reached SR30.8 billion in 2025, up 2 percent year on 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 from Italy. Trade continued in 2026, with Saudi imports from Italy reaching SR3 billion in August and exports to the European country totaling SR1.9 billion.