Wednesday 08 May
In an unprecedented move, Saudi Arabia's Neom megaproject city is set to issue riyal-denominated sukuk (Islamic bonds) in the financial markets later this year which aims to bolster funding for the city's massive infrastructure projects, valued at a staggering $1.5 trillion.
According to well-informed sources, Neom has appointed a consortium of banks to provide advisory services for its upcoming sukuk (Islamic bond) issuance. The selected banks include HSBC Holdings, Rajhi Financial Services and the Saudi National Bank.
Neom's sukuk (Islamic bond) issuance is expected to be denominated in Saudi riyals, with a potential value of up to 5 billion riyals ($1.3 billion), which reflects Neom's strategic decision to leverage domestic financial instruments to secure the necessary funding for its mega projects.
This step comes within Neom’s efforts to achieve its vision to
establish a modern futuristic, technology-driven, and sustainable city, one of
the world's largest infrastructure projects.
The issuance of riyal-denominated sukuk (Islamic bonds)
represents a groundbreaking development for Saudi Arabia's domestic financial
markets. It also signifies strong confidence in the Kingdom's financial and
economic capabilities.
