Saudi Arabia’s Red Sea Global secures US$1.73bn green loan

Construction progress at the Amaala luxury destination in Saudi Arabia (Image courtesy of Red Sea Global)

Funding is being led by Riyad Bank as the sole underwriter along with The Saudi Investment Bank (SAIB) and Bank AlBilad as mandated lead arrangers. The loan agreement adheres to RSG’s Green Loan Framework, which was first established when it secured private funding from a consortium of four banks for The Red Sea destination in 2021.

“Four years ago, we made history by securing the first-ever Riyal denominated green finance credit facility. Since then, we have built and opened nine hotels at The Red Sea destination as well as supporting infrastructure,” said John Pagano, Group CEO at RSG.

This is the third time RSG and Riyad Bank have partnered together. It follows the first green loan facility in 2021, as well as a separate SAR2 billion (US$533 million) debt financing for a joint venture with Kingdom Holding Company for the development of the Four Seasons Resort on Shura Island, which is set to open later this year.

Nadir Al-Koraya, Chief Executive Officer of Riyad Bank, added, “Red Sea Global continues to demonstrate exceptional capability in delivering on bold and transformative developments that align with the Kingdom’s Vision 2030 goals.”

The Green Financing accreditation is governed by a Green Financing Framework aligned with the Green Bond Principles and Green Loan Principles set out by the International Capital Markets Association (ICMA) and the Loan Market Association’s (LMA) respectively.

Amaala situated at Triple Bay, is set to open this year, with more than 1,400 hotel rooms across eight different resorts. It is positioned as an ultra-luxury wellness destination with regeneration at its core. Two hallmark features include Corallium Marine Life Institute, an educational and scientific research center, and a Yacht Club.