NEOM, the futuristic city being built in Saudi Arabia, has secured a new revolving credit facility (RCF) worth $2.6 billion.
The credit facility represents another milestone for NEOM as it progresses with the development of major projects and will be used to support NEOM’s short-term financing requirements.
The RCF, which follows a Murabaha structure, reflects a continuation of NEOM’s strategy to diversify its sources of funding.
Nadhmi Al Nasr CEO – NEOM
“As NEOM continues to gather pace, this new credit facility, backed by Saudi Arabia’s leading financial institutions, is a natural fit within our wider strategy for funding. We continue to explore a variety of funding sources as we deliver transformational infrastructure assets while supporting the wider Vision 2030 program. NEOM is among the largest projects in the world today, and we value the partnership we have with our relationship banks in facilitating access to a range of flexible financing options as we deliver on our ambition.”
The new RCF follows on from the $6 billion agreement signed by NEOM and their partners to finance the NEOM Green Hydrogen Company. It also follows last year’s $800 million debt financing arranged to partially fund NEOM’s development of Sindalah, the luxury island destination set to welcome visitors this year.
The transaction was targeted at Saudi relationship banks and the facility saw strong interest, with nine banks participating. The mandated lead arrangers are Saudi National Bank, Riyad Bank, and Saudi Awwal Bank. The other participant banks are Al Rajhi Banking and Investment Corporation, Alinma Bank, Arab National Bank, Bank Albilad, The Saudi Investment Bank, and Bank AlJazira.
