Red Sea Global secures $1.73bn funding for AMAALA
The loan agreement incorporates a blend of conventional and Islamic financing, aligning with RSG’s Green Loan Framework
Developer Red Sea Global (RSG) has secured a US $1.73bn credit facility specifically designed for the development of AMAALA. The funding initiative is led by Riyad Bank as the sole underwriter, with The Saudi Investment Bank (SAIB) and Bank AlBilad serving as mandated lead arrangers.
The loan agreement incorporates a blend of conventional and Islamic financing, aligning with RSG’s Green Loan Framework. The framework was initially established when RSG secured private funding from a consortium of four banks for the development of The Red Sea destination in 2021, said a statement.
“Four years ago, we made history by securing the first-ever Riyal denominated green finance credit facility. Since then, we have built and opened nine hotels at The Red Sea destination as well as supporting infrastructure. Last month we announced the upcoming opening of Shura Island, which will feature 11 hotels, residences, high-end food and beverage and retail experiences. We have demonstrated that we are a developer who delivers and we’re proud that our financing partners recognise this and have faith to once again back our destinations, this time supporting AMAALA, which opens in the coming weeks,” said John Pagano, Group CEO at RSG.
This is the third time RSG and Riyad Bank have collaborated. Their partnership began with the establishment of the first green loan facility in 2021. They also jointly financed a $533mn debt package for a joint venture with Kingdom Holding Company to develop the Four Seasons Resort on Shura Island, which is expected to open later this year.
Nadir Al-Koraya, President and Chief Executive Officer of Riyad Bank said, “Red Sea Global continues to demonstrate exceptional capability in delivering on bold and transformative developments that align with the Kingdom’s Vision 2030 goals. We are proud to once again support them, this time in realising AMAALA, an ambitious, sustainability-driven destination that will redefine wellness and luxury tourism.”
Gregory Djerejian, Group Head of Investments and Chief Legal Officer at RSG added, “We are grateful to our partners for their continued trust and support. Their backing not only reflects confidence in our vision, but also reinforces our shared commitment to responsible, future-focused development. Together, we are helping to deliver destinations that set new standards for sustainability, wellness, and economic impact.”
The Green Financing accreditation is governed by a Green Financing Framework aligned with the Green Bond Principles and Green Loan Principles established by the International Capital Markets Association (ICMA) and the Loan Market Association (LMA), respectively.
Akin, an international law firm, provided advisory services on the deal. Their Riyadh office acted as the borrower’s counsel, while Linklaters’ Riyadh office acted as the lenders’ counsel. Both firms played a crucial role in ensuring the execution of the transaction. They offered commercially focused and pragmatic legal advice that supported RSG in securing this landmark green financing.
AMAALA, located at Triple Bay, is set to open this year. It will feature over 1,400 hotel rooms across eight different resorts. AMAALA is positioned as an ultra-luxury wellness destination centered around regeneration. Two of its distinctive features are the Corallium Marine Life Institute, an educational and scientific research center, and the AMAALA Yacht Club, which aims to become an international hub for luxury yachting, said the statement.
