Red Sea Global Secures SAR 6.5 Billion Financing For AMAALA Development Project

Red Sea Global (RSG) has secured SAR6.5 billion in credit facilities to develop AMAALA, a regenerative tourism destination. Riyad Bank leads the financing as the sole underwriter, with Saudi Investment Bank and Bank Albilad as lead arrangers. The loan includes both conventional and Islamic financing, adhering to RSG's Green Finance Framework established in 2021.

The green financing aligns with principles from the International Capital Market Association and the Loan Market Association. Akin advised RSG through its Riyadh office, while Linklaters served as the lenders' legal advisor. Both firms provided crucial legal counsel to ensure a smooth transaction.

CEO John Pagano expressed pride in their financial partners' renewed confidence. He stated: "Four years ago, we made history by securing the first-ever riyal-denominated green financing facility. Since then, we have built and opened nine hotels at the Red Sea destination along with supporting infrastructure."

This project marks the third collaboration between RSG and Riyad Bank. Their partnership began with a green loan in 2021 and continued with a SAR2 billion loan for a joint venture with Kingdom Holding Company to develop the Four Seasons Resort on Shura Island.

Nadir Al-Koraya, CEO of Riyad Bank, remarked: "Red Sea Global continues to demonstrate exceptional capability in delivering bold, transformative developments aligned with Saudi Vision 2030." This statement underscores RSG's alignment with national goals.

Upcoming Developments at AMAALA

AMAALA is set to open this year in Triple Bay, featuring over 1,400 hotel keys across eight luxury resorts. It aims to be an ultra-luxury wellness retreat focused on rejuvenation. Highlights include the Coralium Institute for Marine Life and the AMAALA Yacht Club.

The Coralium Institute will serve as a center for marine life research and education. Meanwhile, the AMAALA Yacht Club is poised to become a global hub for luxury yachting activities.

John Pagano also mentioned: "Just last month, we announced the imminent opening of Shura Island, which will feature 11 hotels, residential units, and high-end dining and retail experiences." This reflects RSG's commitment to delivering on its promises.

The successful execution of this financing demonstrates RSG's ability to secure support for its ambitious projects. The company's focus on sustainability aligns with global trends towards environmentally responsible development.

With inputs from SPA