NEOM, the Saudi Arabian giga-project, has announced that it has secured a new revolving credit facility (RCF) worth SAR 10 billion to support its short-term financing requirements. The RCF, which follows a Murabaha structure, is a significant milestone in NEOM’s strategy to diversify its sources of funding.
The facility, backed by Saudi Arabia’s leading financial institutions, will be used to support NEOM’s development of major projects, including its transformational infrastructure assets. The RCF is a testament to NEOM’s strong relationships with its partner banks and its commitment to delivering on its ambition.
Nadhmi Al-Nasr, CEO of NEOM, said: “We are pleased to have secured this new credit facility, which demonstrates the confidence of our partner banks in NEOM’s vision and strategy. We continue to explore a variety of funding sources to support our project development and delivery, and we value our partnership with our relationship banks in facilitating access to flexible financing options.”
The RCF follows on from NEOM’s recent SAR 23 billion agreement with its partners to finance the NEOM Green Hydrogen Company, and its SAR 3 billion debt financing arranged to partially fund the development of Sindalah, the luxury island destination.
The transaction saw strong interest from Saudi relationship banks, with nine banks participating in the facility. The mandated lead arrangers are Saudi National Bank, Riyad Bank, and Saudi Awwal Bank, with other participant banks including Al Rajhi Banking and Investment Corporation, Alinma Bank, Arab National Bank, Bank Albilad, The Saudi Investment Bank, and Bank AlJazira.