Eight banks agree to SAR 5 billion revolving credit facility for Riyadh Air
October 31, 2024
Ahead of launching operations in the summer of 2025, startup airline Riyadh Air, has secured a SAR 5 billion revolving credit facility with access to an additional SAR 2 billion.
The announcement follows the news earlier this week that the startup Saudi carrier has ordered 60 next-generation Airbus A321neo single-aisle aircraft, bringing its total orders up to 132 aircraft.
The self-arranged Revolving Credit Facility has been secured for a duration of one year with eight financial institutions: Arab National Bank, Al Rajhi Bank, Gulf International Bank, Emirates NNBD, Riyad Bank, Banque Saudi Fransi, Saudi Awwal Bank and Saudi National Bank.
As a company under the Public Investment Fund (PIF), securing the credit agreement is a “pivotal moment” for the Saudi carrier according to its CFO, Adam Boukadida. He noted that it highlights Riyadh Air’s strong market positioning as it gears up to launch operations in summer next year. “The confidence shown by our banking partners in this facility underscores their belief in our business model and our vision to redefine air travel.”
The decision to partner with the selected group of lenders also demonstrates Riyadh Air’s strategic focus on developing strong collaborations with leading financial institutions. It also marks a crucial step in solidifying the airline’s financial foundation. The flexible financing tool will play a key role in supporting the airline’s aircraft acquisitions and addresses the challenges of its short-term working capital needs.
