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PIF-owned Riyadh Air secured a one-year SAR 5 bn Shariah-compliant revolving credit facility from a consortium of eight KSA and GCC-based banks, according to a press release. The agreement was signed on the sidelines of the Future Investment Initiative forum and is the carrier’s first credit facility ahead of its planned start of operations next year.
Breakdown: The agreement involves a SAR 3 bn revolving credit facility with a committed accordion option for an additional SAR 2 bn, the statement said. The funds will go towards acquiring new aircraft and covering short-term working capital requirements as Riyadh Air prepares to begin operations in 2025.
Meet the banks: The participating banks are Arab National Bank, Al Rajhi Bank, Gulf International Bank, Emirates NBD, Riyad Bank, Banque Saudi Fransi, Saudi Awwal Bank, and Saudi National Bank.
ICYMI: Riyadh Air placed an order with Airbus last week for 60 A321neo aircraft. The purchase is expected to set the company back some USD 4 bn, with deliveries expected between 2H 2026 and 2030.
IN OTHER DEBT NEWS-
Saudi National Bank (SNB) is gearing up to issue SAR-denominated Additional Tier 1 sukuk, it said in a statement to Tadawul. The issuance — the size and terms of which will be determined based on market conditions — is pending regulatory approval. SNB’s board gave the green light for the initiative in May. The proceeds of the offering will go towards strengthening the bank’s capital base
ADVISORS- SNB Capital will be quarterbacking the potential offer as the sole bookrunner, lead arranger, and lead manager.
