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Saudi’s NEOM secures $2.67bln facility from nine local banks

Saudi Arabia’s megaproject NEOM has secured a new revolving credit facility (RCF) worth 10 billion Saudi riyals ($2.67 billion) from nine local banks to drive forward its construction plans.

The facility will support short-term financing requirements, NEOM said in a statement.

The mandated lead arrangers were Saudi National Bank, Riyad Bank, and Saudi Awwal Bank. 

 Other participant banks were Al Rajhi Bank, Alinma Bank, Arab National Bank, Bank Albilad, The Saudi Investment Bank and Bank AlJazira.

“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,” said chief executive officer Nadhmi Al-Nasr.

“We continue to explore a variety of funding sources as we deliver transformational infrastructure assets while supporting the wider Vision 2030 programme,” he added.

The new RCF follows the SAR 23 billion agreement signed by NEOM and their partners to finance the NEOM Green Hydrogen Company. 

Last year, the mega developer secured a SAR 3 billion debt financing to partially fund NEOM’s development of Sindalah, the luxury island destination that will open this year.