The Red Sea Development Company (TRSDC), the developer behind Saudi Arabia’s Red Sea mega-resort scheme, has obtained $3.76bn (SAR 14.120 billion) in "Green Financing" with four Saudi banks.
Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank acted as Mandated Lead Arrangers. HSBC served as Green Loan Coordinator on the transaction.
Green Financing accreditation is governed by the International Capital Markets Association (ICMA) and the Loan Market Association (LMA). It was awarded to TRSDC owing to its approach to social and environmental sustainability and the Red Sea Project’s international recognition as a green project, the company said.
It is the first Riyal-denominated credit facility to receive Green Financing accreditation.
"The scale of this project is unmatched anywhere in the world and we are setting new standards in regenerative tourism at every turn," said TRSDC chief executive John Pagano, adding the developer aims to achieve a 30% net conservation benefit by 2040.
TRSDC chief financial officer Jay Rosen said: "This financing adds another level of credibility by having the banks support the project. With a fully secured capital structure our project will become more attractive to investors."
"We aim to lead the international luxury tourism industry’s transformation into a more sustainable model, including environmental and social sustainability. This Green Finance classification is the latest proof that we are setting new standards in ecotourism and showing the industry that things can be done in a different way both here in the Kingdom, and globally," said Pagano.
TRSDC said its Red Sea Project is on track to welcome its first guests by the end of 2022, when the international airport and 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 luxury marinas, golf courses, entertainment and leisure facilities.
Image: Render of the Coral Bloom Hotel, one of 50 resorts planned in Saudi Arabia’s Red Sea tourism mega-project (Courtesy of TRSDC)