Riyadh: PIF-backed Riyadh Air, Saudi Arabia's new national airline, announced the successful closing of its inaugural self-arranged Islamic Revolving Credit Facility amounting to SAR3 billion ($1.3 billion).
The facility also includes a committed accordion option for an additional SAR2 billion ($500 million). Eight leading financial institutions have secured the one-year, unsecured financing agreement: Arab National Bank, Al Rajhi Bank, Gulf International Bank, Emirates NBD, Riyad Bank, Banque Saudi Fransi, Saudi Awwal Bank, and Saudi National Bank.
This facility's landmark signing took place during the FII 8th Edition 2024 (Future Investment Initiative), which was held in Riyadh.
Riyadh Air's strategic financial arrangement underscores its strong market positioning and readiness to impact the aviation sector before operations begin. The self-arranged facility reflects banking community confidence and strengthens the airline's financial foundation. This flexible financing will support aircraft acquisitions and short-term working capital needs as it prepares to launch in summer 2025.
Adam Boukadida, Riyadh Air's CFO, 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."
