NEOM Closes $3 Billion Financing Facilities to Support Development of Its Projects
NEOM secured on Monday a landmark financing agreement with Italy's SACE, securing approximately $3 billion under a long-term multicurrency untied facility.
With this move, NEOM aims to support the development of its major projects and regions, according to a statement issued by the company.
The deal marks NEOM's first corporate export credit agency (ECA) financing and the largest untied financing ever guaranteed by SACE.
It will support various projects across NEOM and is backed by a syndicate of nine prominent international banks – HSBC, Banco Bilbao Vizcaya Argentaria, Bank of China, Crédit Agricole CIB, Agricultural Bank of China, Citi, China Construction Bank, J.P. Morgan and Bank of America.
The partnership will enable NEOM to leverage supplies from Italian businesses, particularly SMEs, to support the project's development across key sectors, such as infrastructure, urban development, construction and transport (rail, road and maritime).
To date, Italian suppliers and contractors have supported NEOM on a range of projects, with contracts worth $6.3 billion, and the deal aims to further strengthen and develop these important international business relationships, NEOM said in a statement.
'NEOM is committed to working with global partners who share our passion for visionary projects and initiatives that will advance human progress,' said NEOM Acting CEO Eng. Aiman Al-Mudaifer.
He said this deal advances the Kingdom's aim of generating capital investment in line with Saudi Vision 2030, with foreign investment being instrumental in diversifying the economy.
'This partnership with SACE and the consortium of leading international banks also creates strong ties with major Italian companies that will enhance international trade and investment flows,' Al-Mudaifer said.
SACE CEO Alessandra Ricci said: 'We are glad to play our part alongside NEOM in this cutting-edge project, which generates opportunities in a wide range of sectors for Italian SMEs and supply chains.'
She noted that opening new routes to 'Made in Italy' is a priority to allow a long-term growth for Italian exports, matching their potential.
'Our Riyadh office supports Italian companies and their potential partners and counterparties, by providing experience and insurance financial solutions combined with the added value of a physical presence in the area,' Ricci added.
Meanwhile, the SACE untied facility will expand and diversify NEOM's existing funding pool, supporting its long-term financing requirements as NEOM moves forward in the development of major projects and regions.
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