Saudi Arabia’s NEOM Secures $2.6bn Revolving Credit Facility For Major Project Development
NEOM has announced the successful acquisition of a new revolving credit facility (RCF) worth SAR10 billion ($2.6 billion approximately).
This achievement marks another significant step forward for NEOM as it continues to forge ahead with its major development projects.
The funds obtained through this credit facility will be used to address NEOM’s short-term financing requirements.
NEOM to diversify funding sources
The RCF, structured under the principles of Murabaha, underscores NEOM’s commitment to diversifying its funding sources.
“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 company’s CEO, Nadhmi Al-Nasr said.
This recent RCF follows a significant agreement worth SAR23 billion previously signed by NEOM and its partners to finance the NEOM Green Hydrogen Company.
Moreover, it follows last year’s SAR3 billion debt financing arrangement, which was instrumental in partially funding the development of Sindalah, a luxurious island destination set to welcome visitors later this year.
The credit facility transaction was specifically targeted at Saudi relationship banks, and it garnered substantial interest, attracting the participation of nine banks.
The mandated lead arrangers for this facility include Saudi National Bank, Riyad Bank, and Saudi Awwal Bank.
The other participating banks consist of Al Rajhi Banking and Investment Corporation, Alinma Bank, Arab National Bank, Bank Albilad, The Saudi Investment Bank, and Bank AlJazira.
