Saudi’s Red Sea Development tourism project secures $3.76 billion loan

Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank will finance the loan, the UAE-based The National reported.

“This is another milestone for the Red Sea Project and Vision 2030, and we are pleased to have secured our debt financing and capital commitment for our initial phase,” Jay Rosen, Chief Financial Officer at TRSDC 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.”

Under the kingdom’s ambitious Vision 2030 plan that seeks to diversify the country’s economy away from oil, tourism plays a key role in achieving that goal. There are several giga tourism projects in the works in the kingdom, including the Red Sea Development project, AlUla, and Neom.

“Green Financing accreditation was awarded due to TRSDC’s market leading approach to social and environmental sustainability and the Red Sea Project’s international recognition as a green project. The financing is the first Riyal-denominated credit facility to receive Green Financing accreditation,” CEO of TRSDC John Pagano said.

John Pagano, chief executive of The Red Sea Development Co.

“The scale of this project is unmatched anywhere in the world and we are setting new standards in regenerative tourism at every turn. By applying a unique approach to design, utilizing more sustainable methods of construction and using groundbreaking technology, we are not only reducing our impact on the environment but helping to deliver on our commitment to achieve a 30 percent net conservation benefit by 2040. It is this pioneering approach that has helped us secure the first ever Riyal-denominated Green Finance credit facility.” he added.