Red Sea Development Company Closes Loan amounting to SR14.120bln

The Red Sea Development Company, the developer of one of the world’s most ambitious renewable tourism projects, announced that it has reached financial close with 4 leading Saudi banks for its SR14,120 billion ($3.76 billion) loan.

The 4 main delegates to the regulation announced earlier this year include Banque Saudi Fransi, Riyad Bank, SABB and Saudi National Bank (SNB).

“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 increase the value of biodiversity by up to 30% percent by 2040, in this context, John Pagano, CEO of the Red Sea Development Company, remarked.

“With the bank facilities and capital commitments needed for the first 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. 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 concluded.

The Red Sea Development Company’s green finance deal also recently won the “Best Project Finance Deal of the Year” award 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.

This loan is the first credit facility denominated in Saudi riyals granted within the framework of green financing, and the Red Sea Development Company is the first major project that succeeded in reaching the capital markets.

“We are pleased to achieve the financial closure of the first credit facility denominated in Saudi riyals to be granted under the green financing framework for the first phase of our destination. This financing from the support of local banks will add greater credibility to the destination, which will make it more attractive. to investors thanks to a fully insured capital structure,” Jay Rosen, Director of Finance and Investment at the Red Sea Development Company, commented.”

The Red Sea project has already passed important stages of development work, and work is in full swing to receive guests by the end of 2022.

The completion of the first phase, which includes 16 hotels, will be completed in 2023.

The Red Sea project, when completed in 2030, will consist of 50 hotels, providing a total of 8,000 hotel rooms, in addition to more than 1,000 housing units spread over 22 islands and six inland locations. The destination will also include an international airport, luxury marinas, golf courses, and many recreational and leisure facilities.