NEOM seals SAR 10B credit facility deal

NEOM announced it obtained fresh credit facilities worth SAR 10 billion ($2.67 billion), Reuters reported.

The credit facility, which is based on the Murabaha structure, aims to support the stages of work progress in the main projects namely The Line, Oxagon, Trojena and Sindalah, Saudi Press Agency reported.

NEOM CEO Nazmi Al-Nasr, said: "The credit facilities, which are supported by a group of leading financial institutions in the Kingdom, are in line with our comprehensive financing strategy of dealing with a variety of financial sources to support our pioneering infrastructure projects. They also align with the economic goals of the Kingdom’s Vision 2030. We appreciate the support from our banking partners for providing a variety of financing options that contribute to the completion of this project, which is among the largest in the world".

Earlier in 2023, NEOM and its partners sealed a financing agreement worth SAR 23 billion to establish NEOM Green Hydrogen Company. NEOM also signed an agreement worth SAR 3 billion to partially finance the Sindalah Island development project and prepare it to receive visitors this year.

The facilities were secured from Saudi National Bank (SNB), Riyad Bank, Saudi Awwal Bank (SAB), Al Rajhi Bank, Alinma Bank, Arab National Bank (ANB), Bank Albilad, Saudi Investment Bank (SAIB) and Bank AlJazira, the newswire said, citing a statement.

These facilities come with the aim of supporting NEOM project's short-term financing requirements.