TRSDC secures $3.7bn funding for mega Red Sea project
RIYADH, 3 hours, 18 minutes ago The Red Sea Development Company (TRSDC), the developer behind the world’s most ambitious regenerative tourism project in Saudi Arabia, has closed a SR14.120 billion ($3.76 billion) term loan facility and revolving credit facility with four Saudi banks. The financing is the first Riyal-denominated credit facility to receive green financing accreditation, said a statement from TRSDC. The Green Financing accreditation is governed by a Green Financing Framework aligned with the Green Bond Principles (2018) and Green Loan Principles (2020) set out by the International Capital Markets Association (ICMA) and the Loan Market Association’s (LMA) respectively.
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The Red Sea Development Company (TRSDC) secured 14.12 billion Saudi riyals ($3.76bn) in funding through the first locally-denominated Green Financing credit facility. The developer raised the capital through term loan and revolving credit facilities from four banks in Saudi Arabia to fund construction of the multibillion-dollar tourism project on the west coast of the kingdom, it said in a statement on Tuesday.
Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank were part of the financing deal.
“This is another milestone for the Red Sea Project and Vision 2030,” 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.”
Saudi developer clinches $3.7bn green loan for The Red Sea Project
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The financing is the first riyal-denominated credit facility to receive green financing accreditation
by Zainab Mansoor
April 27, 2021
The Red Sea Development Company (TRSDC), Saudi-based developer has closed a SAR14.12bn ($3.76bn) term loan facility and revolving credit facility with four Saudi banks, it announced today.
The financing is the first riyal-denominated credit facility to receive green financing accreditation. Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank acted as mandated lead arrangers, while HSBC served as green loan coordinator on the transaction.
Four leading Saudi banks participate in first riyal-denominated green financing The Red Sea project is aiming for a complete transformation of an hitherto undeveloped location in the Kingdom. Image Credit: Supplied
Dubai: A Saudi tourism project has secured one of the biggest ‘green’ financing to date – at a whopping 14.12 billion ($3.76 billion).
The Red Sea Development Co. (TRSDC) will use these funds to part-finance its project – one of the Kingdom’s biggest tourism-focussed projects. Green financing is given to those projects that are built with social and environmental sustainability frameworks.
In fact, this is the first Saudi riyal-denominated credit facility to receive a green financing accreditation. The funding is structured as a term loan and revolving credit facility from four Saudi banks - Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank.
5 hours ago
The Red Sea Development Company (TRSDC) has closed a SAR14.1 billion (US$3.8 billion) term loan and revolving credit facility 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.
The financing 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.
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“By applying a unique approach to design, utilising more sustainable methods of construction and using ground-breaking technology, we are not only reducing our impact on the environment but helping to deliver on our commitment to achieve a 30 per cent net conservation benefit by 2040.