Riyadh Air, the formidable new startup airline wholly owned by the PIF (Public Investment Fund), Saudi Arabia’s sovereign wealth fund, introduced the profitable closing of its inaugural self-arranged Islamic Revolving Credit Facility amounting to SAR 3.0 billion. The facility additionally features a dedicated accordion possibility for an extra SAR 2.0 billion. The one-year, unsecured financing settlement has been secured with eight main monetary establishments: 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 happened through the FII eighth Edition 2024 (Future Investment Initiative) held in Riyadh.
This strategic monetary association highlights Riyadh Air’s sturdy market positioning and readiness to make a major influence within the aviation sector, even earlier than the graduation of its operations. The profitable self-arrangement of this facility displays the arrogance and assist from the banking neighborhood and marks a vital step in solidifying the airline’s monetary basis because it prepares to take to the skies. This versatile financing device will play a essential position 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 Financial Officer of Riyadh Air, said: “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 choice to companion with the chosen group of lenders for its inaugural revolving credit facility demonstrates its strategic concentrate on constructing sturdy, cohesive relationships with main monetary establishments. This facility is not only a monetary milestone, however a assertion of Riyadh Air’s willpower to ascertain itself as a serious participant within the international monetary market.
