Tuesday, May 28, 2024

Red Sea Development secures $3.8bn in fresh funding

The Red Sea Development Company (TRSDC) the developer behind a global tourism project, has secured a SAR14.1 billion (US$ 3.8 billion) loan 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 per cent net conservation benefit by 2040,” explained John Pagano, chief executive of the Red Sea Development Company.

“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.”

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.

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.”

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.

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