Bloomberg sources revealed that Saudi Arabia intends to raise a joint loan worth $11 billion for a period of 10 years to finance its investment plans.
The agency stated, according to what was published by Al Arabiya.net, that the interest will be at 100 basis points above the overnight lending rate in the United States.
The agency indicated that the Industrial and Commercial Bank of China was appointed as coordinator and bookrunner for the long-term loan. The bank invited other banks to participate in the loan, and asked interested parties to respond before mid-October.
Bloomberg had previously reported that NEOM, a unit of the Public Investment Fund, was seeking to obtain a loan worth 10 billion riyals. The company held talks with a group of local banks to raise the loan with the aim of financing the early stages of the future city project at a cost of $500 billion, according to the agency.
The agency indicated that the banks are negotiating with NEOM regarding the terms, noting that if an agreement is reached, the loan will be completed in the next few months. NEOM also plans to raise up to 3 billion riyals from local banks to finance the development of Shusha Island, one of the most important coastal destinations within the NEOM project.
