Riyadh Air Obtains SAR 5 Billion Revolving Credit Facility from Eight Leading Financial Institutions in KSA and the GCC

Riyadh Air, the ambitious new startup airline wholly owned by the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, is pleased to announce the successful closing of its inaugural self-arranged Islamic Revolving Credit Facility, totaling SAR 3 billion. This facility includes a committed accordion option for an additional SAR 2 billion.

The one-year, unsecured financing agreement has been secured with eight leading financial institutions: Arab National Bank (ANB), Al Rajhi Bank, Gulf International Bank (GIB), Emirates NBD (ENBD), Riyad Bank, Banque Saudi Fransi (BSF), Saudi Awwal Bank (SAB), and Saudi National Bank (SNB).The landmark signing of this facility occurred during the Future Investment Initiative (FII) 8th Edition 2024, held in Riyadh.

This strategic financial arrangement underscores Riyadh Air’s strong market positioning and readiness to make a significant impact in the aviation sector, even before its operations commence. The successful self-arrangement of this facility demonstrates the confidence and support from the banking community and represents a crucial step in solidifying the airline’s financial foundation as it prepares to take to the skies. This flexible financing tool will be vital in supporting Riyadh Air’s ambitious aircraft acquisition efforts and addressing its short-term working capital needs ahead of the planned launch in the summer of 2025.

Adam Boukadida, Chief Financial Officer of Riyadh Air, stated, “Securing this Revolving credit facility is a pivotal moment for Riyadh Air as we gear up for our launch. The confidence shown by our banking partners in this facility underscores their belief in our business model and our vision to redefine air travel. We have always strongly maintained that Riyadh Air will be a commercially sustainable business and this is reflected in their steadfast support for our plans. This financing not only strengthens our liquidity but also aligns with our strategy to maintain financial discipline as we approach our operational debut.”

Riyadh Air’s decision to partner with the selected group of lenders for its inaugural revolving credit facility demonstrates its strategic focus on building strong, cohesive relationships with leading financial institutions. This facility is not just a financial milestone, but a statement of Riyadh Air’s determination to establish itself as a major player in the global financial market.

Last Updated on November 4, 2024 by Staff Writer