The Red Sea Development Company Financially Closes on SAR 14.120 billion Loan
- Loan represents the first ever Riyal-denominated Green Finance credit facility
- Facilities now available to fund the development of Phase 1 of The Red Sea Project
- The Red Sea Development Company is also the recipient of the Project Finance Deal of Year Award in GFC's ‘Capital Markets Saudi Arabia Awards’
Riyadh, (19 January 2022): 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 (USD 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 percent net conservation benefit by 2040,
said John Pagano, CEO of TRSDC.
“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.
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.”
TRSP 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.
About The Red Sea Development Company
The Red Sea Development Company (TRSDC - www.theredsea.sa) is a closed joint-stock company wholly owned by the Public Investment Fund (PIF) of Saudi Arabia. TRSDC was established to drive the development of The Red Sea Project, a luxury, regenerative tourism destination that will set new standards in sustainable development and position Saudi Arabia on the global tourism map.
The project is being developed over 28,000 km2 of pristine lands and waters along Saudi Arabia’s west coast and includes a vast archipelago of more than 90 pristine islands. The destination also features sweeping desert dunes, mountain canyons, dormant volcanoes, and ancient cultural and heritage sites. It is designed to include hotels, residential properties, leisure, commercial and entertainment amenities, as well as supporting infrastructure that emphasizes renewable energy and water conservation and re-use, as well as a circular waste management system to achieve zero waste to landfill.
Activity for the first phase of development is well underway and is on track to be completed by the end of 2023. The project has surpassed significant milestones, with over 700 contracts signed to date, worth over SAR 20 B ($5 bn).
The 100-hectare Landscape Nursery, which will provide approximately 25 million plants for The Red Sea Project and AMAALA, is now fully operational. There are more than 10,000 workers currently on-site and 80km of new roads are now complete, including the new airport road, to better connect the destination. The Construction Village is now open and development is progressing well at the Coastal Village, which will be home to around 14,000 people who will eventually work at the destination.
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