The firm that’s transforming an archipelago, desert and mountains – an area about the size of Belgium – on Saudi Arabia’s Red Sea coast into a global tourism destination is talking to banks to raise $3.5 billion, according to people with knowledge of the matter. The Red Sea Development Co. started discussions with local lenders for a 13 billion-riyal loan in what would be its first borrowing, the people said, asking not to be identified because the matter is private. The loan may have a 15-year tenor and is likely to be backed by the kingdom’s sovereign wealth fund, the Public Investment Fund, some of the people said. The terms of the financing may change and the company hopes to complete a deal by the end of the year. The first phase of the Red Sea project is expected to be completed by 2022.
Spain: Brexit to blame for beer not flowing
The beer isn’t flowing like it used to in Spain’s tourist hotspots, and Brexit is part of the problem. Sterling’s decline has made U.K. travelers even more price sensitive this summer holiday season, pushing some to choose cheaper beach destinations in Turkey, Egypt and Tunisia. Fewer British visitors means not as many cold brews being downed. Tourists from the U.K. and elsewhere drink around 25% of the beer consumed in Spain annually. British tourists have an outsized impact on Spain. It’s their top destination and about 18.5 million visited in 2018. That makes their ebbs and flows important not just for beer and food, but the entire tourism industry, which accounts for nearly 12% of Spain’s economy.
Thailand: Strong baht helps Thai iPhone retailer
While Thailand’s surging currency is squeezing exporters, the nation’s largest consumer-electronics retail chain is benefiting as the strong baht attracts customers by making iPhones and Samsung smartphones cheaper. Com7 Pcl’s 72% total return this year through Monday on its stock ranks as the world’s best performance among electronics sellers with a market value of at least $500 million, according to data compiled by Bloomberg. Earnings growth will enjoy “strong momentum” for the rest of this year, partly helped by the baht, after a record profit in the second quarter, according to the company.
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