Red Sea Development Company financially closes $3.76 billion loan
The Red Sea Development Company (TRSDC), the developer of the world’s largest regenerative tourism project, today announced that it has reached financial close on its $14.120 billion Term Loan Facility and Revolving Credit Facility. SAR ($3.76 billion) with four major Saudi banks.
As previously announced, 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 moved forward at the pace of delivering our flagship project, keeping in mind our commitment to not only reduce our impact on the environment, but also to actively deliver a 30% net conservation benefit. by 2040,” said John Pagano, CEO of TRSDC.
“With our capital structure fully in place, we will continue to focus on the execution and delivery of the project, which remains on schedule to welcome the first guests by the end of this year. We are grateful to our partners banks for supporting one of Vision 2030’s most exciting projects,” he added.
TRSDC’s green finance was recently honored with the Project Finance Deal of the Year award at the Capital Markets Saudi Arabia Awards.
The award, presented by the GFC Media Group (one of the leading conference organizers and deal givers in the Middle East), honors the most innovative and groundbreaking deals of the year from sovereign issuers and borrowers , corporate and financial institutions. .
The Green Financing accreditation was awarded due to TRSDC’s market-leading approach to social and environmental sustainability and the international recognition of the Red Sea Project (TRSP) 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 Finance Director at TRSDC, said: “We are delighted to have quickly reached financial close on the first-ever riyal-denominated green financing for our initial phase. With this step taken, our project gains credibility on the market and strengthens the attractiveness for investors.
TRSP has already achieved significant milestones and work is on track to welcome the first guests by the end of 2022, when the first hotels will open. The first phase, which includes a total of 16 hotels, will be completed in 2023.
When completed in 2030, the Red Sea project will include 50 resorts, offering up to 8,000 hotel rooms and more than 1,000 residential properties across 22 islands and six inland locations. The destination will also include an international airport, luxury marinas, golf courses, entertainment and leisure facilities.