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PIF-owned developer Red Sea Global is planning to borrow “at least” SAR 14 bn (USD 3.7 bn) over the next 12 months, Group Head of Investments and Legal Gregory Djererjjan tells Bloomberg. The debt will be used to finance Red Sea Global’s development of several projects, including the construction of Amaala, which will include 29 hotels, Djerejjan told the business information service.
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Past financing: The developer — which is also mulling a potential IPO in 2026 — had previously borrowed SAR 14.1 bn in 2021 to finance the construction of the first phase of the Red Sea project, Bloomberg notes.
Red Sea Global expects that six hotels will be operational before the year is out, with another 20 slated to open their doors next year. The plan for next year’s hotel operations include eight hotels at Amaala, according to Djerejjan.
SPEAKING OF WHICH- The developer also inked an agreement with Marriott International to open the Ritz-Carlton Amaala in 2025, according to a press release. The development will feature 391 luxury rooms with sea views. Amaala, one of the Kingdom’s flagship regenerative tourism projects along the Red Sea coast in northwestern Saudi Arabia, is fast becoming a global luxury destination.
IN OTHER DEBT NEWS-
#1- PIF-owned real estate developer Roshn Group signed a SAR 9 bn (USD 2.4 bn) syndicated credit facility to finance the company’s “growth and expansion plans,” according to a statement. The unsecured revolving facility carries a five-year tenor.
ADVISORS- Saudi National Bank, Arab National Bank, and Riyad Bank were bookrunners and mandated lead arrangers, while Bank Al Bilad and Alinma Bank participated were lead arrangers. Saudi Awwal Bank was an arranger. Riyad Bank acted as the documentation & agent bank. AS&H Clifford Chance provided counsel for the banks and White & Case was counsel for Roshn.
#2- Aldrees Petroleum bought into Riyad Bank’s USD-denominated sukuk issuance, purchasing USD 59.7 mn of the instruments, according to a filing to the exchange. The sukuks have an annual return of 5.5% over a five-and-a-half-year period, with semi-annual dividend distributions. Aldrees made the purchase to diversify its investments via secure holdings of sukuks.
ICYMI- Riyad Bank closed a USD 750 mn additional tier 1 sustainable sukuk issuance on Monday, with settlement set for tomorrow. The 3,750 sukuk, priced at USD 200k each, will be listed on the London Stock Exchange’s International Securities Market.
