Red Sea Global Financially Closes on SAR 14.120 billion Loan
Published
19 Jan 2022
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Investment Red Sea News
Red Sea Global Financially Closes on SAR 14.120 billion Loan
Published
19 Jan 2022
Share
- 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
- Red Sea Global is also the recipient of the Project Finance Deal of Year Award in GFC's ‘Capital Markets Saudi Arabia Awards’
"Riyadh, (19 January 2022): Red Sea Global (formely known as TRSDC), the developer behind the world’s most ambitious regenerative tourism projects, The Red Sea and Amaala, 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, Group CEO of RSG.
“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. "
"RSG’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 RSG’s market leading approach to social and environmental sustainability and The Red Sea destination 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 RSG, 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.” The Red Sea has already passed significant milestones and work is on track to welcome the first guests by the end of 2022. Phase one, which includes 16 hotels in total, will complete in 2023. Upon completion in 2030, The Red Sea 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 Red Sea Global
Red Sea Global (RSG - www.redseaglobal.com) is a closed joint-stock company wholly owned by the Public Investment Fund (PIF) ofSaudi Arabia.
RSG is a global multi-project developer, seeking to lead the world towards a more sustainable future, showing how responsible and regenerative development can uplift communities, drive economies, and enhance the environment. The protection of natural capital is central to all development decisions, as the organization seeks to create abetter future for all.
A cornerstone of Saudi Arabia’s Vision 2030 ambition to diversify its economy, RSG is playing a key role in transforming the nation, by creating exciting opportunities for young Saudi talent and the private sector, as it develops built assets and destinations across multiple sectors that make a positive impact for people and planet.
RSG is the visionary company behind some of the world’s most ambitious development ventures, including luxury regenerative tourism destinations such as The Red Sea and AMAALA.
Across its portfolio, RSG leverages the most innovative concepts, strategies, and technologies to deliver projects that actively enhance the wellbeing of customers, communities, and environments.
