A Spanish-led consortium has secured a $800m loan to finance the development of a high-speed rail link between Mecca and Medina.

The deal was financed by Spain’s BBVA, Banesto, Banco De Sabadell, Caixiabank, and the Spanish arms of France’s Credit Agricole and Germany’s Deutsche Bank. The loan is expected to cover the beginning of construction of the scheme.

Last July, the Al-Shoula consortium won the $7.9bn contract to build the Mecca-Medina rail, also known as the Haramain high-speed railway. The contract covers the construction of 450 kilometres of track, the supply of trains and maintenance to the line, which will be able to carry more than 160,000 passengers a day.