Red Sea Global (RSG), the multi-project developer behind the world’s most ambitious regenerative tourism destinations - The Red Sea and Amaala, has achieved commercial close on a financing agreement to support its joint venture with Almutlaq Real Estate Investment Company (AREIC), a subsidiary of the Al Mutlaq Group (AMG).
The SR1.081 billion ($288 million) green financing was provided by Gulf International Bank Saudi Arabia (GIB).
It is the fifth Saudi bank to support Red Sea Global in the debt capital markets, following Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank’s involvement with a green loan deal last year.
It had achieved financial close on the first-ever riyal denominated green financing with its SR14.120 billion ($3.76 billion) facility, it stated.
The initial joint venture with AREIC was signed in July last year and was worth SR1.6 billion for the development of Jumeirah The Red Sea, a 159-key luxury resort located on The Red Sea destination’s hub island, Shura.
Shura Island forms part of the first phase of development, and will comprise 11 luxury, premium and lifestyle hotels and resorts, residential units, a championship golf course, 118 berth marina, and a comprehensive retail, dining, and entertainment offering.
On the key achievement, RSG Group CEO John Pagano said: "Achieving commercial close for our debt financing so swiftly after signing our joint venture with AREIC demonstrates private sector confidence in the long-term success of our destinations and appetite in the Kingdom’s Vision 2030."
"Our projects present promising business opportunities to many, with the ability to leverage key strategic assets and drive economic growth and diversification as outlined by Vision 2030," he stated.
AREIC Chairman Tariq Almutlaq said: "We’re delighted to achieve commercial close on our joint venture so soon after signing the agreement and it is testament to Red Sea Global’s best-in-class management team that it has been able to happen."
"Already progress is being made at pace to bring the destination to life and we are excited to continue helping Red Sea Global achieve its vision," he stated.
Gulf International Bank CEO Abdulaziz Al Helaissi said RSG has made an ambitious commitment to being conservation-positive, supported by its partnership with King Abdullah University of Science and Technology.
"GIB is proud to enable this activity through the provision of green finance, and we look forward to seeing the positive impacts generated on sustainable development goals," stated Al Helaissi.
Pagano pointed out that the latest commercial close marks another milestone for RSG's project delivery team as it builds on the group's strong reputation and attracts more foreign investment.
"It’s clear the investment community is enticed by our flagship projects and Vision 2030 and we expect more interest from those focused on ESG who recognize our full potential," he noted.
According to Pagano, The Red Sea is on track to welcome first guests in 2023 when the initial hotels will open. Upon full completion in 2030, the project will boast 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 an international airport, luxury marinas, golf courses, entertainment, and leisure facilities, he added.-TradeArabia News Service