The Red Sea Development Company (TRSDC), the developer behind the world’s most ambitious regenerative tourism project, announced today that it has achieved Financial Close on its SAR 14.120 billion ($3.76 billion) term loan facility and revolving credit facility with four leading Saudi banks.
As announced previously, 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% net conservation benefit by 2040,” explained John Pagano, Chief Executive Officer, The Red Sea Development Company.
The loan represents the first-ever Riyal-denominated Green Finance credit facility
“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.
Facilities are now available to fund the development of Phase 1 of The Red Sea Project
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.
Jay Rosen, Group Chief Financial Officer at TRSDC, said: “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.”