Riyadh, October 31, 2024 – Riyadh Air, the ambitious new Saudi airline fully owned by the Public Investment Fund (PIF), has announced the successful closure of its inaugural Islamic Revolving Credit Facility worth SAR 3 billion. This facility, which includes an additional SAR 2 billion through a committed accordion option, was self-arranged and secured with eight of the region’s leading financial institutions, including 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 signing took place during the 8th Future Investment Initiative (FII) in Riyadh, marking a critical financial milestone for Riyadh Air, set to begin operations in summer 2025. This flexible, one-year unsecured financing provides a robust foundation for Riyadh Air’s initial operational needs, including aircraft acquisitions and working capital.
The establishment of this revolving credit facility underscores Riyadh Air’s strategic market positioning and the strong confidence shown by regional banks in its long-term vision. Riyadh Air’s Chief Financial Officer, Adam Boukadida, highlighted the significance of this financing step, stating, “Securing this revolving credit facility is a pivotal moment for Riyadh Air as we gear up for our launch. Our banking partners’ confidence demonstrates their belief in our vision to redefine air travel. This financing not only strengthens our liquidity but also supports our strategy to maintain financial discipline as we approach our operational debut.”
This collaboration with leading financial institutions in Saudi Arabia and the GCC reinforces Riyadh Air’s commitment to building cohesive relationships within the banking sector and establishes the airline as a significant player in the global aviation market even before its first flight.
