Red Sea Development, 4 Leading Saudi Banks Conclude SR14,120bln Loan

The Red Sea Company and 4 main financial institutions: Banque Saudi Fransi, Riyad Bank, SABB and SNB concluded a SR14,120 billion ($3.76 billion) loan.

Red Sea Development company, a developer of one of the world’s most ambitious renewable tourism projects, has announced.

“This year, we continued to implement our pioneering destination, while working hard not only to reduce our environmental footprint, but also to fulfill our commitment to achieve an increase in the value of biodiversity, by up to 30%, by Year 2040,” John Pagano, CEO of the Red Sea Development company explained, in this context.

“With the bank facilities and capital commitments required for the 1st phase of the project, we will continue to focus on the implementation and delivery of the destination on time to welcome guests by the end of next year, he added, pointing out that: We are also grateful for the confidence of local banks, in the Red Sea destination and for their support of one of the most important projects of Vision 2030,” he elaborated.

The Red Sea Development Company’s green finance deal was recently awarded “Best Project Finance Deal of the Year” at the “Saudi Capital Markets Awards.”

GFC Media Group – one of the largest conference organizers and award givers of bonds, loans and sukuks, in the Middle East – awarded this award to the Red Sea Development Company, in recognition of the most innovative and pioneering deals from lenders and borrowers from sovereign institutions, companies and financial institutions.

The success of the Red Sea Development Company in obtaining green financing approval for its pioneering approach, in the field of social and environmental sustainability, and the global confidence gained by the Red Sea destination, as a sustainable project.

The loan is the 1st credit facility denominated in Saudi Riyal, granted within the framework of green financing, and the Red Sea Development company is the 1st major project that succeeded in reaching the capital markets.