Red Sea second phase financing method 'not determined yet', may consider IPO: CEO

CEO of Amaala and TRSDC John Pagano

Funding for the second phase of the Red Sea project is not determined yet but the developer, The Red Sea Development Co. (TRSDC), could consider an initial public offering (IPO), asset sales, or tap debt markets, Bloomberg reported, citing CEO of Amaala and TRSDC John Pagano.

Proceeds of SAR 14.1 billion from the green credit facility obtained by the project will be used to fund the first phase, scheduled for completion by the end of 2023.

According to data compiled by Argaam, TRSDC recently raised SAR 14.12 billion in term loan facility and revolving credit facility from four Saudi banks.

Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank acted as mandated lead arrangers, while HSBC served as green loan coordinator on the transaction.

With regards to the Amaala project, Pagano said that the tourism project might raise up to SAR 10 billion next year.

The numbers have not yet been finalized, with the amount of debt likely to be in the range of SAR 5-10 billion, he said. The company awarded more than SAR 3 billion in contracts.