Saudi flag carrier Saudia has signed what it described as the largest aviation sector financing agreement in the kingdom's history in a deal worth SAR11.2 billion ($3 billion).
Six Saudi banks are providing financing for the deal: Al Rajhi Bank, Saudi British Bank, Arab National Bank, Samba, Bank AlJazira, and Bank Albilad.
HSBC Saudi acted as financial adviser for Saudia and is the appointed investment agent for the transaction.
The flag carrier said the agreement would partially finance the acquisition of 73 new aircraft, covering its aircraft financing requirements to mid-2024.
Saudia has purchase agreements with Airbus and Boeing, comprising orders for 20 Airbus A321neos, 15 A321XLRs, 30 A320neos for low-cost offshoot Flyadeal, as well as eight Boeing 787-10 widebodies. Of these, five 787-10 aircraft have already been inducted into the fleet.
“Though the airline industry has been going through a challenging phase in 2020 and 2021, the total bids received for this financing exceeded SAR18 billion ($4.8 billion), which shows the market’s confidence in Saudi Arabian Airlines Corporation’s strategic long-term plans and its ability to deliver substantial growth in line with Saudi Vision 2030,” the airline said.