PIF Raises $3B With SACE Guarantee in Dual-Tranche Financing
A 25-bank syndicate arranged a $1.78 billion dollar tranche and a €1.035 billion green tranche, extending PIF's cooperation with Italy's export credit agency.
Saudi Arabia's Public Investment Fund has raised $3 billion in credit facilities backed by a SACE guarantee, with 25 international banks arranging the dual-tranche deal.
A joint statement issued Tuesday set out the split: a $1.78 billion dollar tranche and a €1.035 billion green tranche worth about $1.2 billion. Proceeds from the euro portion go to projects that qualify under the fund's green finance framework.
PIF, the kingdom's sovereign wealth fund, is widening the set of channels it borrows from as it funds a large domestic and overseas portfolio. The package also opens procurement work for Italian suppliers.
Rasees AlSaud, who leads financial institutions and investor relations in PIF's Global Capital Finance division, said the deal reflected a diversified financing strategy and long-term investment priorities. SACE chief executive Michele Pignotti said it would facilitate Italian exports and push companies toward opportunities in PIF's portfolio.
The transaction extends a relationship formalised in a March 2025 memorandum of understanding, under which SACE agreed to consider as much as $3 billion in additional support for projects involving PIF and its portfolio companies. Earlier cooperation had already helped those companies obtain more than $3 billion of SACE-backed financing from international lenders.
PIF has sold green debt before. No sovereign wealth fund had issued a green bond ahead of it, and it later priced one with a 100-year maturity. The euro tranche adds to that record.
Europe takes a substantial share of the fund's deployment: $109.6 billion (€98 billion) since 2017, a commitment restated at the FII PRIORITY Summit in Rome.
Revenue climbed 9% year on year to $120 billion in 2025 and net profit more than doubled to $17 billion. Assets under management were about $906 billion (SAR 3.4 trillion) at end-2025; total consolidated assets reached roughly $1.21 trillion (SAR 4.5 trillion). Domestic investment exceeded $199 billion cumulatively from 2021 to 2025. Moody's assigns Aa3 and Fitch A+, both stable.
The appeal of the structure is that it turns a sovereign balance sheet into orders for Italian industry while giving PIF another funding line for Vision 2030, the diversification programme it finances. Yasir Al-Rumayyan, the fund's governor, took first place in the Investment & Holdings category of a 2026 sustainability leaders ranking.
