Riyadh Air, the ambitious new startup airline wholly owned by  the PIF (Public Investment Fund), Saudi Arabia’s sovereign wealth fund, announced the successful closing of its inaugural self-arranged Islamic Revolving Credit Facility  amounting to SAR 3.0 billion. The facility also includes a committed accordion option for an  additional SAR 2.0 billion. 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).

The landmark signing of this facility took place during the FII 8th Edition 2024 (Future  Investment Initiative) held in Riyadh.

This strategic financial arrangement highlights Riyadh Air’s strong market positioning and  readiness to make a significant impact in the aviation sector, even before the  commencement of its operations. The successful self-arrangement of this facility reflects  the confidence and support from the banking community and marks a crucial step in  solidifying the airline’s financial foundation as it prepares to take to the skies. This flexible  financing tool will play a critical role in supporting Riyadh Air’s ambitious aircraft  acquisition activities and addressing the airline’s short-term working capital needs as it  prepares to launch operations in the summer of 2025.

Adam Boukadida, Chief Financial Officer of Riyadh Air, stated: “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. We have always strongly maintained  that Riyadh Air will be a commercially sustainable business and this is reflected in their  steadfast support for our plans. This financing not only strengthens our liquidity but also  aligns with our strategy to maintain financial discipline as we approach our operational  debut.”

Riyadh Air’s decision to partner with the selected group of lenders for its inaugural revolving  credit facility demonstrates its strategic focus on building strong, cohesive relationships  with leading financial institutions. This facility is not just a financial milestone, but a statement of Riyadh Air’s determination to establish itself as a major player in the global  financial market.