Saudi Arabia is evaluating financing options to develop NEOM, working with New York-based Lazard Ltd. to develop plans to potentially include debt sales and an initial public offering on the Saudi stock exchange for the high-tech city, people familiar with the matter told Bloomberg.
Crown Prince Mohammed bin Salman.
Per Bloomberg, deliberations are “in the early stages and no firm decisions about the size or structure of any financing have been taken,” citing the people familiar with the situation who asked not to be identified discussing confidential information. A spokesperson for Lazard declined to comment, while a representative for Neom didn’t respond to request for comment, the report said.
The advisory mandate “puts Lazard in a prime position to land future work related to Neom, which is considered by many to be one of the most complex construction undertakings in the world,” the Bloomberg report added.
The first phase of Neom, which runs until 2030, will cost 1.2 trillion riyals ($319 billion), with about half of that figure covered by Saudi Arabia’s Public Investment Fund
[Click here to read the full report from Bloomberg]
