Saudi Arabia’s Riyadh Air has secured a SAR 3 billion Islamic Revolving Credit Facility, the carrier announced during the Future Investment Initiative (FII) 8th Edition 2024 in Riyadh.
The one-year, unsecured financing agreement includes a committed accordion option for an additional SAR 2 billion.
Eight financial institutions have participated in the arrangement: Arab National Bank, Al Rajhi Bank, Gulf International Bank, Emirates NBD, Riyad Bank, Banque Saudi Fransi, Saudi Awwal Bank and Saudi National Bank.
PIF-owned Riyadh Air announces major financial milestone
The airline, owned by Saudi Arabia’s Public Investment Fund (PIF), plans to utilise the facility to support its aircraft acquisition programme and address working capital requirements before its planned launch in the summer 2025.
“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,” Adam Boukadida, Chief Financial Officer of Riyadh Air said.
The self-arranged facility marks the carrier’s first step into the global financial market, demonstrating its focus on building relationships with financial institutions before beginning operations.
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