Riyadh Air, the formidable new startup airline wholly owned by the PIF (Public Funding Fund), Saudi Arabia’s sovereign wealth fund, introduced the profitable closing of its inaugural self-arranged Islamic Revolving Credit score Facility amounting to SAR 3.0 billion. The ability additionally features a dedicated accordion possibility for an further SAR 2.0 billion. The one-year, unsecured financing settlement has been secured with eight main monetary establishments: Arab Nationwide Financial institution (anb), Al Rajhi Financial institution, Gulf Worldwide Financial institution (GIB), Emirates NBD (ENBD), Riyad Financial institution, Banque Saudi Fransi (BSF), Saudi Awwal Financial institution (SAB) and Saudi Nationwide Financial institution (SNB).
The landmark signing of this facility passed off throughout the FII eighth Version 2024 (Future Funding Initiative) held in Riyadh.
This strategic monetary association highlights Riyadh Air’s robust market positioning and readiness to make a big impression within the aviation sector, even earlier than the graduation of its operations. The profitable self-arrangement of this facility displays the boldness and help from the banking neighborhood and marks an important step in solidifying the airline’s monetary basis because it prepares to take to the skies. This versatile financing software will play a crucial function in supporting Riyadh Air’s formidable plane acquisition actions and addressing the airline’s short-term working capital wants because it prepares to launch operations in the summertime of 2025.
Adam Boukadida, Chief Monetary Officer of Riyadh Air, said: “Securing this Revolving credit score facility is a pivotal second for Riyadh Air as we gear up for our launch. The confidence proven by our banking companions on this facility underscores their perception in our enterprise mannequin and our imaginative and prescient to redefine air journey. Now we have at all times strongly maintained that Riyadh Air shall be a commercially sustainable enterprise and that is mirrored of their steadfast help for our plans. This financing not solely strengthens our liquidity but additionally aligns with our technique to take care of monetary self-discipline as we method our operational debut.”
Riyadh Air’s choice to associate with the chosen group of lenders for its inaugural revolving credit score facility demonstrates its strategic give attention to constructing robust, cohesive relationships with main monetary establishments. This facility is not only a monetary milestone, however a assertion of Riyadh Air’s dedication to ascertain itself as a serious participant within the international monetary market.
