Saudia signs SAR 11.2 bln finance deal with 6 local banks for fleet expansion

A Saudia plane 

Saudi Arabian Airlines Corporation (Saudia) signed SAR 11.2 billion finance agreement with six local banks to boost its fleet.

The agreement was signed in the presence of the representatives of the six Saudi banks — Al Rajhi Bank, Saudi British Bank (SABB), Arab National Bank (ANB), Samba Financial Group, Bank AlJazira, and Bank Albilad. HSBC Saudi acted as the financial advisor for Saudia and was also appointed as investment agent for banks in the transaction.

The agreement aims to partially finance the acquisition of the previously announced 73 new aircraft, covering the corporation’s aircraft financing requirements until mid-2024. Saudi Arabian Airlines Corporation completed the purchase agreements for Airbus and Boeing aircraft, including 20 A321neo, 15 A321XLR, as well as 30 A320neo for flyadeal, and eight Boeing 787-10. Five Boeing 787-10 aircraft have been inducted into the corporation’s fleet so far.

“This agreement will contribute substantially to the kingdom’s long-term economic growth and development," said Saudi Arabia's Minister of Transport, Saleh bin Nasser Al Jasser.

“Saudi Arabian Airlines Corporation’s fleet expansion will boost tourism and its allied sectors, generate substantial employment opportunities, significantly improve air connectivity, and enhance the flow of foreign investments,” he added.

The robust capacity from our national flag carrier in partnership with the six local banks to conclude the financing structure of this size, for the first time in Saudi Arabia’s aviation history, reinforces the strength of the Saudi banking sector. The corporation will play a key role in contributing to the overall growth of the Saudi economy by attracting more tourists and pilgrims to the Kingdom, Al Jasser concluded.