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.
On completion in 2030, The Red Sea Project will feature 50 resorts, offering up to 8,000 hotel rooms and more than 1,000 residential properties across 22 islands and six inland sites. The destination will also include marinas, golf courses, entertainment and leisure facilities.
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% net conservation benefit by 2040
Phase 1 opening
The project work is on track to welcome the first guests by the end of 2022, when the airport and the first hotels will open. Phase one, which includes 16 hotels in total, will complete in 2023.
“We aim to lead the international luxury tourism industry’s transformation into a more sustainable model, including environmental and social sustainability," said John Pagano, CEO of TRSDC. "This Green Finance classification is the latest proof that we are setting new standards in ecotourism and showing the industry that things can be done in a different way both here in the Kingdom - and globally.”
The framework enables The Red Sea Development Co. (TRSDC) to issue green loans and other financial instruments. It allows TRSDC to identify, select, manage and report on eligible projects and assets in line with principles.
DNV provided an independent, second-party opinion on TRSDC’s Green Finance Framework, confirming its alignment with internationally recognized principles.