The Red Sea Development Company (TRSDC) has secured $3.76bn (SAR14.12bn) term loan facility and revolving credit facility from four Saudi banks for 16 new hotels.

The banks are Banque Saudi Fransi, Riyad Bank, Saudi British Bank (SABB) and Saudi National Bank (SNB). These acted as mandated lead arrangers on the transaction while HSBC served as Green Loan Coordinator.

The loan finances the first phase of an ambitious luxury, regenerative tourism and hospitality destination, called The Red Sea Project.

Work on the first phase of the development is already ongoing.

The company said that the first four hotels will open by the end of 2022 while the remaining 12 hotels planned for phase one will open in 2023.

TRSDC chief financial officer Jay Rosen said: “This is another milestone for the Red Sea Project and Vision 2030, and we are pleased to have secured our debt financing and capital commitment for our initial phase.

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“This financing adds another level of credibility by having the banks support the project. With a fully secured capital structure our project will become more attractive to investors.”

In February, TRSDC awarded two major contracts for hotel development at its Southern Dunes site and Ummahat Al Shaykh Island.

Fully owned by sovereign fund the Public Investment Fund, the Red Sea Project is part of Saudi Arabia’s Vision 2030.

The over 28,000km2 Red Sea Project is a land and property development along Saudi Arabia’s west coast. It will complete in 2030.

Red Sea Project will feature 50 resorts, up to 8,000 hotel rooms and more than 1,000 residential properties in 22 islands and six inland sites.

It also includes an international airport as well as marinas, golf courses, businesses, shops, entertainment and leisure facilities.

TRSDC CEO John Pagano said: “The scale of this project is unmatched anywhere in the world and we are setting new standards in regenerative tourism at every turn.

“By applying a unique approach to design, utilising more sustainable methods of construction and using ground-breaking 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.

“It is this pioneering approach that has helped us secure the first ever Riyal-denominated Green Finance credit facility.”