TRSDC secures SAR 14.1 bln ‘green’ loan from Saudi banks

The Red Sea Development Company (TRSDC) raised SAR 14.12 billion ($3.76 billion) in term loan facility and revolving credit facility from four Saudi banks, the developer said in a statement today, April 27, 2021.

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.

The financing is the first SAR-denominated credit facility to receive green financing accreditation.

The green financing accreditation is governed by a green financing framework aligned with the green bond principles (2018), and green loan principles (2020) set out by the International Capital Markets Association and the Loan Market Association.

The framework will enable TRSDC to issue green loans and other green financial instruments and allow it to identify, select, manage and report on eligible projects and assets in line with principles.

The four participating banks demonstrated their environmental, social and governance (ESG) credentials through this credit facility, while TRSDC established itself as a world-leader in sustainable development, the statement noted.

“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,” said John Pagano, CEO of TRSDC.