HSBC served as green loan co-ordinator on the transaction, while Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank acted as mandated lead arrangers.
“The scale of this project is unmatched anywhere in the world and we are setting new standards in regenerative tourism at every turn,” said John Pagano, CEO of the Red Sea Development Company (TRSDC).
“By applying a unique approach to design, utilizing more sustainable methods of construction and using groundbreaking technology, we are not only reducing our impact on the environment but helping to deliver on our commitment to achieve a 30 percent net conservation benefit by 2040.
“It is this pioneering approach that has helped us secure the first ever Riyal-denominated green finance credit facility,” he added.
The growing move to socially responsible investing and the impact on attractions was discussed at greenloop, Blooloop’s sustainability conference, last week.
Saudi project focuses on sustainability
“This is another milestone for the Red Sea Project and Vision 2030, and we are pleased to have secured our debt financing and capital commitment for our initial phase,” said Jay Rosen, CFO at TRSDC.
“This financing adds another level of credibility by having the banks support the project. With a fully secured capital structure our project will become more attractive to investors.”
The framework will enable TRSDC to issue green loans and other green financial instruments. It will also let TRSDC identify, choose, manage and report on projects and assets in line with the green finance principles.
Red Sea Project on track to launch in 2022
“We aim to lead the international luxury tourism industry’s transformation into a more sustainable model, including environmental and social sustainability,” Pagano added.
“This green finance classification is the latest proof that we are setting new standards in eco-tourism and showing the industry that things can be done in a different way both here in the Kingdom, and globally.”
The Red Sea Project is on track to open its international airport and first hotels by the end of 2022, with 16 additional hotels opening in 2023.