TRSDC set to obtain SAR 14 bln loan from local banks: sources

Logo of The Red Sea Development Co.

The Red Sea Development Co. (TRSDC) is close to obtaining a loan worth SAR 14 billion from a group of local banks, Bloomberg reported, citing sources familiar with the matter. The banks include Saudi National Bank, Banque Saudi Fransi, Riyad Bank and Saudi British Bank, the sources said, adding that the loan will have a tenor of 15 years and an interest rate of about 1% above the Saudi interbank offered rate (SAIBOR).

The deal will help finance the first phase of the development and will be called green loan, with the proceeds used to fund environmentally sustainable investment.

TRSDC’s CEO John Pagano earlier said the company was about to close financing worth about SAR 14 billion with five Saudi banks. He added that the estimated cost of the Coral Bloom development, part of the luxury Red Sea megaproject, is between SAR 12 and SAR 14 billion, according to data compiled by Argaam.