The Red Sea Development Company (TRSDC), the developer that is building the world’s most sustainable luxury tourist destination, The Red Sea Project on Saudi Arabia’s west coast, has announced that it has achieved Financial Close on its SAR 14.120 billion (USD 3.76 billion) term loan facility and revolving credit facility with four leading Saudi banks.
The arrangement is with Banque Saudi Fransi, Riyad Bank, and Saudi British Bank, with Saudi National Bank acting as Mandated Lead Arrangers, and represents the first-ever Riyal-dominated green finance credit facility.
Flagship project proceeding at pace
“This year, we have proceeded at pace with the delivery of our flagship project, all the while mindful of our commitment to not only reduce our impact on the environment but actively deliver a 30 percent net conservation benefit by 2040,” says John Pagano, CEO of TRSDC.
“With our capital structure fully in place we will continue to focus on execution and delivery of the project, which remains on schedule to welcome first guests by the end of this year. We are grateful to our banking partners for their support of one of Vision 2030’s most exciting projects.”
Jay Rosen, Group Chief Financial Officer at TRSDC, adds, “We are pleased to have swiftly achieved Financial Close on the first-ever Riyal-denominated Green Financing for our initial phase. With this milestone reached, our project gains additional credibility in the market and enhances the attractiveness to investors.”
A focus on sustainable development
The Green Financing accreditation was awarded as a result of TRSDC’s focus on sustainable development. The financing is the first Riyal-denominated credit facility to receive Green Financing accreditation and the project is the first major project in Saudi Arabia to successfully access the capital markets.
The company has also been awarded Project Finance Deal of Year in the Capital Markets Saudi Arabia Awards, a ceremony that celebrates some of the most ground-breaking deals from Sovereign, Corporate and Financial Institution issuers and borrowers.
The Red Sea Project will be able to welcome guests by the end of this year, with phase one expected to complete in 2023. Located within a pristine 28,000 square kilometre area, the ultra-luxury destination will offer activities for nature lovers, outdoor adventurers, cultural explorers, wellness seekers and more.
Last year, TRSDC formed a partnership with biotechnology firm Blue Planet Ecosystems that will enable it to produce seafood sustainably. Meanwhile, Saudi Arabia’s Public Investment Fund also announced the merging of the developers of Amaala, an adjacent giga-project, with the TRSDC.
