The Red Sea Development Company (TRSDC), the developer of the world’s most ambitious regenerative tourism project, today announced it has entered into a $ 3.76 billion term loan facility and revolving credit facility with four Saudi banks.
Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank acted as mandated principal arrangers. HSBC served as the green loans coordinator on the transaction.
Green Financing accreditation was awarded due to the TRSDC’s approach to social and environmental sustainability and the international recognition of the Red Sea Project as a green project. The Financing is the first Riyal denominated credit facility to receive Green Financing approval.
“The scale of this project is unmatched in the world and we are setting new standards in regenerative tourism at every turn. By applying a unique approach to design, using more sustainable construction methods and using breakthrough technology, we not only reduce our impact on the environment, but we help deliver on our commitment to achieve a net conservation benefit. by 30 percent by 2040. It was this pioneering approach that helped us secure the very first Riyal-denominated Green Finance credit facility, ”said John Pagano, CEO of TRSDC.
Jay Rosen, CFO of TRSDC, said: “This is another important milestone for the Red Sea and Vision 2030 project, and we are delighted to have secured our debt financing and capital commitment for our. initial stage. This funding adds another level of credibility by getting the banks to support the project. With a fully secured capital structure, our project will become more attractive to investors. “
Green Financing accreditation is governed by a Green Financing Framework aligned with the Green Bond Principles (2018) and Green Loan Principles (2020) defined by the International Capital Markets Association (ICMA) and the Loan Market Association (LMA) respectively. The framework enables the TRSDC to issue green loans and other green financial instruments and enables the TRSDC to identify, select, manage and report eligible projects and assets in accordance with the principles. DNV provided a second independent opinion on the TRSDC’s green finance framework, confirming its alignment with these internationally recognized principles.
Thanks to this credit facility, the four participating banks demonstrate their environmental, social and governance (ESG) credentials, while TRSDC is able to establish itself as a world leader in sustainable development.
“We aim to lead the transformation of the international luxury tourism industry towards a more sustainable model, including environmental and social sustainability. This Green Finance rating 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 around the world, ”he said. Pagano said.
The Red Sea project has already taken important steps and work is on track to welcome the first customers by the end of 2022, when the international airport and the first hotels will open. The first phase, which includes 16 hotels in total, will end in 2023.
When completed in 2030, the Red Sea project will include 50 resorts, offering up to 8,000 hotel rooms and over 1,000 residential properties on 22 islands and six inland locations. The destination will also include luxury marinas, golf courses, entertainment and recreation facilities.