Riyadh Air, the ambitious new startup airline wholly owned by the PIF (Public Investment Fund), Saudi Arabia’s sovereign wealth fund, announced today the successful closing of its inaugural self-arranged Islamic Revolving Credit Facility amounting to SAR 3.0 billion. The facility also includes a committed accordion option for an additional SAR 2.0 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 took place during the FII 8th Edition 2024 (Future Investment Initiative) held in Riyadh.
This strategic financial arrangement highlights Riyadh Air’s strong market positioning and readiness to make a significant impact in the aviation sector, even before the commencement of its operations. The successful self-arrangement of this facility reflects the confidence and support from the banking community and marks a crucial step in solidifying the airline’s financial foundation as it prepares to take to the skies. This flexible financing tool will play a critical role in supporting Riyadh Air’s ambitious aircraft acquisition activities and addressing the airline’s short-term working capital needs as it prepares to launch operations 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.
