Riyadh – Mubasher: Saudi Arabia’s Red Sea Development Company is set to conclude a green loan worth SAR 14 billion with local banks, with the proceeds to be used in funding environmentally sustainable investment, Bloomberg reported.

Saudi National Bank, Banque Saudi Fransi, Riyad Bank, and Saudi British Bank are among the small group of banks participating in the credit facility.

This loan is part of the financing to Crown Prince Mohammed bin Salman’s programme to diversify the economy of Saudi Arabia.

The loan will reportedly have a 15-year tenor and an interest rate of nearly 1% above the Saudi interbank offered rate.

Red Sea Development first started approaching banks for financial assistance in mid-2019.

A week ago, the company said it was beginning the infrastructure works at Coastal Village, which is expected to house around 14,000 employees who will eventually work at the destination.