PIF-owned Red Sea Global secured a SAR 6.5 bn (USD 1.73 bn) credit facility to fund the development of its Amaala destination, it said in a press release. The financing was led by Riyad Bank as the sole underwriter, with the Saudi Investment Bank and Bank Albilad acting as mandated lead arrangers. The agreement includes conventional and Islamic financing and adheres to the developer’s Green Loan Framework.

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We knew this was coming: In October 2024, the developer voiced plans to borrow “at least” SAR 14 bn (USD 3.7 bn) over the next 12 months to finance Red Sea Global’s development of several projects, including some SAR 6 bn in credit to finance Amaala.

Amaala is slated to open this year as an ultra-luxury wellness destination. Located at Triple Bay, it features more than 1.4k hotel rooms across eight resorts, the Corallium Marine Life Institute, and the Amaala Yacht Club. Construction has progressed rapidly after the company inked a USD 1.5 bn agreement with a consortium of France-based EDF Group and Abu Dhabi’s Masdar back in November, along with Korea East-West Power Company and Paris-based Suez Company to develop the utility infrastructure.

IN CONTEXT- This is the third collaboration between RSG and Riyad Bank, following a 2021 green loan for The Red Sea destination and a SAR 2 bn financing for a joint venture developing the Four Seasons Resort on Shura Island.

RSG has funneled around SAR 42 bn into the development of the Red Sea Destination so far, of which SAR 14 bn were funded through credit facilities. “We have sold about SAR 1.5 bn in residential sales, but we have SAR 2 bn in pending [agreements],” CEO John Pagano said last month, noting that demand is primarily driven by Saudis, followed by foreign visitors.

The company is building 27 hotels and resorts across its Red Sea and Amaala projects, 10 of which are already open, Pagano said on the sidelines of FII9 yesterday (watch, runtime: 2:52). One more will open in December and two in January, with all 27 set to be fully operational by May. The sites run on renewable energy and are supported by the new Red Sea airport that opened in 2023, he added. RSG is also set to launch its first luxury project in Italy soon, marking its first international expansion.

ADVISORS- Akin provided counsel to Red Sea Global, while Linklaters advised Riyad Bank, the Saudi Investment Bank, and Bank Albilad.

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