NEOM secures $3 billion in financing from 9 global financial institutions

NEOM announced the successful completion of a unique financing deal through the Italian Export Credit Agency (SACE), where it obtained approximately $3 billion in flexible long-term financing facilities in multiple currencies.

Through this step, NEOM aims to support development operations in its various projects and destinations. This agreement is the first of its kind for NEOM to obtain financing through an export credit agency, and it also constitutes the largest unconditional financing provided by the Italian agency. This deal is supported by an alliance of nine prominent global financial institutions, namely: HSBC Bank, Banco Bilbao Vizcaya Argentaria, Bank of China, Credit Agricole CIB Arab Financial Company, Agricultural Bank of China, Citi, China Construction Bank, JP Morgan Bank, and Bank of America.

This agreement will enable NEOM to benefit from the services of Italian suppliers, especially SMEs, to support the development of its projects in various core sectors, including infrastructure, urban development, construction, and transportation (rail, roads, and maritime). This comes at a time when the value of contracts executed by Italian companies and contractors in NEOM to date has reached $6.3 billion, and the new agreement will contribute to strengthening and developing these important international trade relations.

Eng. Ayman Al-Mudaifer, Acting CEO of NEOM, said: “NEOM is committed to working with global partners who share its ambition to accelerate human progress through quality projects and initiatives. While this financing will support the implementation of a wide range of our projects, it is also in line with the objectives of Saudi Vision 2030 in attracting investments, as foreign investment plays an important role in diversifying the economy. This financing also reflects the confidence that major financial institutions worldwide have in NEOM and its various projects.”

He added that “this partnership with the Italian Export Credit Agency, in alliance with a number of major financial institutions worldwide, will build strong ties with leading Italian companies, which will enhance international trade and investment flows.” For her part, Alessandra Ricci, CEO of the Italian Export Credit Agency, said: “We are pleased to cooperate with NEOM to support this pioneering global project, which opens up broad prospects for Italian SMEs and supply chains, as enhancing opportunities for Italian products is a priority for achieving long-term growth for Italian exports, in line with their potential. Our office in Riyadh supports Italian companies and their partners, by sharing expertise and providing financial and insurance solutions, in addition to consolidating the position and presence of these companies in the region.”

In addition, the financing facilities that will be provided by the Italian Export Credit Agency will enhance NEOM’s current financing operations and contribute to diversifying its sources, which supports the long-term financing needs of the major projects and destinations that it is developing.