Riyadh Aviation obtains a revolving credit facility worth 5 billion riyals

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Riyadh - Mubasher: Riyadh Aviation, a subsidiary of the Public Investment Fund and the new air carrier of Saudi Arabia, announced the successful closing of its first revolving credit facility worth SAR 3 billion, which is self-regulating and Sharia-compliant, with a committed increasing facility option worth SAR 2 billion.

The company explained, in a statement issued today, Thursday, that it obtained the financing agreement for a full year from 8 financial institutions, including: Arab National Bank, Al Rajhi Bank, Gulf International Bank, Emirates NBD, Riyadh Bank, Saudi French Bank, Al-Awwal Bank, and National Commercial Bank of Saudi Arabia, without any guarantees.

She pointed out that this facility was signed during the eighth edition of the Future Investment Initiative 2024, which will be held in Riyadh from October 29 to 31, 2024.

She pointed out that these strategic financial arrangements confirm Riyadh Aviation's solid position in the market, and its ability to bring about a qualitative transformation in the aviation sector even before the start of its operational operations.

The carrier’s success in self-organising this facility reflects the banking community’s confidence in it and its strong support for it, and it constitutes a crucial step towards establishing its financial foundations as it prepares to launch its operations.

This flexible financing instrument will play a pivotal role in supporting Riyadh Aviation’s ambitious activities to expand its fleet of aircraft and meet its short-term working capital needs in preparation for its anticipated launch of flights in the summer of 2025.

“Securing this revolving credit facility represents a pivotal moment for Riyadh Air, particularly as it prepares to launch its operations,” said Adam Boukadida, Chief Financial Officer of Riyadh Air.

He continued: “It reflects the confidence of our banking partners in us and their belief in our ability to achieve our ambitious vision of reshaping the features of air transport. Their strong support for us is evidence of their confidence that we will be a commercially sustainable company, as we have always stressed since our inception.”

“This financing is a critical step in enhancing our liquidity and is also in line with our strategy of maintaining financial discipline as we approach the launch of our operations,” he added.

He also noted that Riyadh Aviation’s decision to partner with a select group of lenders in its first revolving credit facility demonstrates its strategic focus on building strong and cohesive relationships with leading financial institutions.

He added: “The importance of this credit facility goes beyond being a mere financial achievement. It is a confirmation of the company’s determination to be an influential force in the global financial market.”

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