The Red Sea Development Company (TRSDC), the developer behind the world’s most ambitious regenerative tourism project, has achieved financial close on its SR14.12 billion ($3.76 billion) term loan facility and revolving credit facility with four leading Saudi banks.
The banks are Banque Saudi Fransi, Riyad Bank, and Saudi British Bank, with Saudi National Bank acting as mandated lead arrangers.
“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,” explained John Pagano, Chief Executive Officer, The Red Sea Development Company.
“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,” he added.
TRSDC’s Green Financing was recently acknowledged with an award for Project Finance Deal of Year in the Capital Markets Saudi Arabia Awards.
The award, granted by the GFC Media Group (one of the big conference organizers and award givers in the Middle East transaction space), is in recognition of the year’s most innovative and ground-breaking deals from Sovereign, Corporate and Financial Institution issuers and borrowers.
The Green Financing accreditation was awarded due to TRSDC’s market leading approach to social and environmental sustainability and The Red Sea Project’s (TRSP) international recognition as a green project. The financing is the first Riyal-denominated credit facility to receive Green Financing accreditation and the project is the first major project in the Kingdom to successfully access the capital markets, said a statement.
Jay Rosen, Group Chief Financial Officer at TRSDC, said: “We are pleased to have swiftly achieved financial close on the first 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.”
The Red Sea Project has already passed significant milestones and work is on track to welcome the first guests by the end of 2022, when the first hotels will open. Phase one, which includes 16 hotels in total, will complete in 2023.
Upon completion in 2030, The Red Sea Project will comprise 50 resorts, offering up to 8,000 hotel rooms and more than 1,000 residential properties across 22 islands and six inland sites. The destination will also include an international airport, luxury marinas, golf courses, entertainment, and leisure facilities. – TradeArabia News Service