Riyadh Air has closed its inaugural self-arranged Islamic revolving credit facility amounting to SAR 3.0 billion ($798.6 million). The facility also includes a committed accordion option for an additional SAR 2.0 billion ($532.4 million).
This financing is set to play a critical role in supporting Riyadh Air's ambitious aircraft acquisition activities while addressing the airline's short-term working capital needs as it prepares to launch operations in the summer of 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,” said Adam Boukadida,,chief financial officer of Riyadh Air. “This financing not only strengthens our liquidity but also aligns with our strategy to maintain financial discipline as we approach our operational debut.”
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).
This announcement comes one day after the start-up airline announced that it has placed an order with Airbus for 60 A321neo aircraft.