Saudi Arabia’s Red Sea Development Company (TRSDC) has secured a $3.77 billion ‘green’ loan from four Saudi banks.
The company said that the 15-year term loan and revolving credit facility was signed with Banque Saudi Fransi, Saudi British Bank (SABB), Riyad Bank, and Saudi National Bank (SNB).
The loan is green finance, the first of its kind in a Saudi riyal-denominated loan facility, said the statement, adding that the accreditation was awarded due to its market-leading approach to social and environmental sustainability and the Red Sea Project’s international recognition as a green project.
Through this credit facility, the four participating banks are demonstrating their Environmental, Social, and Governance (ESG) credentials, while TRSDC is able to establish itself as a world-leader in sustainable development.
CEO of TRSDC John Pagano said that by applying a unique approach to design, utilizing more sustainable methods of construction, and using groundbreaking technology, the company is not only reducing its impact on the environment but helping to deliver on its commitment to achieving 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,” said Pagano.
He noted that this financing adds another level of credibility by having the banks support the project, adding that with a fully secured capital structure the project will become more attractive to investors.
Saudi Vision 2030 aims to diversify the national economy, and by 2027, the Red Sea project is expected to receive 2.4 billion tourists, which leads to spending $2.2 trillion.
The Red Sea project will contribute to diversifying the Saudi economy and providing many important jobs and investment opportunities.
