NEOM has announced that it has secured a new revolving credit facility (RCF) worth SAR 10 billion, which will be used to support its short-term financing requirements.
The RCF, which adheres to a Murabaha structure, follows on from the SAR 23 billion agreement signed by NEOM and its partners to finance the NEOM Green Hydrogen Company and last year’s SAR 3 billion debt financing, arranged to partially fund NEOM’s development of Sindalah.
Nadhmi Al-Nasr, CEO, NEOM, said: “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.”
Adding: “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 transaction was targeted at Saudi relationship banks, with nine banks participating.
The mandated lead arrangers are:
- Saudi National Bank,
- Riyad Bank, and
- Saudi Awwal Bank.
The other participant banks include Al Rajhi Banking and Investment Corporation, Alinma Bank, Arab National Bank, Bank Albilad, The Saudi Investment Bank, and Bank AlJazira.