Saudi Arabia’s NEOM has secured a new revolving credit facility (RCF), worth SAR 10 billion ($2.667 billion), that will support short-term financing requirements as NEOM moves forward with the development of major projects, including Trojena, THE LINE, Oxagon and the soon-to-open luxury island destination Sindalah.
The transaction was targeted at Saudi relationship banks, NEOM said, adding that the facility saw strong interest, with nine banks participating. The mandated lead arrangers are Saudi National Bank, Riyad Bank and Saudi Awwal Bank. Other participant banks are Al Rajhi Banking and Investment Corporation, Alinma Bank, Arab National Bank, Bank Albilad, The Saudi Investment Bank and Bank AlJazira.
Nadhmi Al-Nasr, CEO of NEOM, commented: “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.”
To note, the new RCF follows the SAR 23 billion ($6.133 billion) agreement signed by NEOM and their partners to finance the NEOM Green Hydrogen Company (NGHC), as well as SAR 3 billion ($800 million) debt financing from 2023, arranged to partially fund NEOM’s development of Sindalah.
In late 2023, NGHC reached a milestone in the construction and development of the NEOM green hydrogen plant by receiving its first delivery of wind turbines at the Port of NEOM in Northwest Saudi Arabia.
According to NEOM, NGHC’s facility, located in Oxagon, NEOM’s reimagined industrial city, will integrate as much as 4 gigawatts of solar and wind energy to produce up to 600 tons of carbon-free hydrogen daily. Once the plant is fully operational in 2026, 100% of the green hydrogen produced will be available for global export in the form of green ammonia.