{"id":85617,"date":"2024-04-29T00:00:00","date_gmt":"2024-04-29T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/04\/29\/neom-taps-domestic-banks-for-sar-10-bn-to-finance-short-term-needs\/"},"modified":"2024-04-29T00:00:00","modified_gmt":"2024-04-29T00:00:00","slug":"neom-taps-domestic-banks-for-sar-10-bn-to-finance-short-term-needs","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/04\/29\/neom-taps-domestic-banks-for-sar-10-bn-to-finance-short-term-needs\/","title":{"rendered":"Neom taps domestic banks for SAR 10 bn to finance short-term needs"},"content":{"rendered":"

Neom has secured a fresh revolving credit facility (RCF) worth SAR 10 bn <\/strong>from local banks to help it meet short-term financing needs as it picks up the pace for its USD 500 mn development, it said in a statement<\/a>. <\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

What we know: <\/strong>The new facility, which follows a Murabaha structure, saw \u201cstrong interest\u201d with the participation of nine local banks. The Saudi National Bank, Riyad Bank and Saudi Awwal Bank were lead arrangers for the RCF, while other participant banks included Al Rajhi, Alinma Bank, Arab National Bank, Bank Albilad, the Saudi Investment Bank, and Bank AlJazira.<\/p>\n

Some of the city\u2019s landmark projects have been lining up funds:<\/strong> Neom Green Hydrogen Company (NGHC) signed a SAR 23 bn (c. USD 6.1 bn) agreement in May last year<\/a> with a number of local, regional and international banks to finance its USD 8.4 bn green hydrogen facility \u2014 slated to be the world\u2019s largest green hydrogen production facility. It also secured a SAR 3 bn debt financing facility last year<\/a> from Riyad Bank for the development of its luxury island destination Sindalah.<\/p>\n

REMEMBER- <\/strong>Neom has been looking to diversify<\/a> its funding sources away from the PIF, which has poured most of the funding into the project in the form of equity. It is reportedly planning a SAR-denominated bond sale in what could be the gigaproject\u2019s first-ever sukuk sale. Officials have signaled that government projects will look abroad for financing <\/strong>amid policymakers\u2019 concerns they could be seen as crowding-out private-sector borrowers by soaking up too much bank liquidity.<\/p>\n

What they said<\/strong>: \u201cThis new credit facility, backed by Saudi Arabia\u2019s 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,\u201d Neom CEO Nadhmi Al Nasr said.<\/p>\n

\n

SHOW AND TELL CONTINUES-<\/p>\n

Neom hosted representatives of 52 unnamed global and local lenders<\/strong> to show actual progress in the futuristic city amid reports of a slower buildout, it said in a separate statement<\/a>. Some 24 representatives from global banks from Germany, Spain, France, England, the US, China, Japan, and South Korea attended Neom\u2019s show and tell. The event also saw the attendance of 13 regional banks from Qatar, Kuwait and UAE and 15 local financial institutions.<\/p>\n

Neom just came off the road in China<\/strong> \u2014 officials have been particularly interested in driving interest from Hong Kong, Beijing, and Shanghai.<\/p>\n

BACKGROUND- <\/strong>Bloomberg reported recently that the buildout of The Line was moving slower<\/a>than planned<\/a>. Officials at Neom replied quickly, bringing in top execs from some 100 global construction firms earlier this month to assure them the buildout is proceeding on schedule<\/a> \u2014 and that more business is in the pipeline.<\/p>\n","protected":false},"excerpt":{"rendered":"

The funding is used to support its short-term financing needs for ongoing major projects<\/p>\n","protected":false},"author":1,"featured_media":85618,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2590],"tags":[57,10,509,100,1151,1609],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-85617","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-debt-watch","tag-debt-watch","tag-enterpriseam-ksa","tag-gigaprojects","tag-neom","tag-public-investment-fund-pif","tag-the-line","wpautop","entry"],"acf":{"mongo_id":"75787763-837c-42a8-9501-9061ab9fc3fe","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/4\/1185.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Neom taps Saudi banks for SAR 10 bn to finance short-term needs","related_issue":[85610],"teaser":"The funding is used to support its short-term financing needs for ongoing major projects","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/5\/.7a950cd5-5435-43ce-afab-7cfaa2de1074.mp3"},"yoast_head":"\nNeom taps domestic banks for SAR 10 bn to finance short-term needs - 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