The Red Sea Development Company has plans to raise up to SAR 10 billion (USD 2.67 billion) in green financing next year, Reuters reported. The funding will be raised for ultra-luxury tourism development Amaala, with which the The Red Sea Development Company was recently merged.
According to the report, CEO John Pagano said that The Red Sea Development Company was looking to raise SAR 5-10 billion next year, noting that the amount was “likely going to be on the lower end of that scale.”
"We will come to the market probably sometime next year with a financing for Amaala specifically related to the first phase of the project," Pagano told Reuters.
The green financing will be aimed at nine hotels to be developed in the first phase of Amaala, to be opened in 2024.
The plans follow on the heels of a green loan of SAR 14.12 billion (USD 3.76 billion) raised by The Red Sea Development Company this year.
THE RED SEA DEVELOPMENT COMPANY RAISES GREEN FINANCING IN MARCH
The developer, which is behind the ecotourism giga-project The Red Sea Project, raised SAR 14.120 billion (USD 3.76 billion) through a riyal-led green credit facility.
The term loan facility and revolving credit facility was raised from four Saudi banks – Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank. HSBC was the Green Loan Coordinator for the deal.
This was the first riyal-led credit facility to receive a Green Financing accreditation. The accreditation is governed by the International Capital Markets Association and the Loan Market Association.
The funding was largely responsible for a growth in green financing in H1 this year. Green and sustainability-linked loan financing touched USD 6.4 billion, surpassing the USD 4.7 billion raised in all of 2020. Issuances of green financing and sustainability-linked loans in the MENA region also went up by 38% in the first half.
The Red Sea Project is on track to open an international airport and hotels, and welcome guests by the end of next year. Phase one of the sustainable tourism project is anticipated to be completed by 2023.
The entire project, meanwhile, is scheduled for completion by 2030. By then, The Red Sea Development Company will have developed 50 resorts with up to 8,000 hotel keys, over 1,000 residential properties across 22 islands and six inland sites at the project. The destination will also include luxury marinas, golf courses, and entertainment and leisure facilities.
Photo credit: www.design-middleeast.com/serene-luxury-amaala/, www.argaam.com/en/article/articledetail/id/607731
EXPAND YOUR REAL ESTATE KNOWLEDGE
Subscribe to the Cityscape Intelligence newsletter here