Saudia signs financing agreement worth $3 billion

Saudia has signed a financing agreement with six local banks worth $3 billion, making it the largest deal in the history of Saudi Arabia’s aviation sector.

Image:  Saudia

The agreement was signed in Jeddah in the presence of Transport minister and chairman of the board of Saudia, Eng. Saleh bin Nasser Al-Jasser; director general of Saudia Eng. Ibrahim bin Abdulrahman Al-Omar and the representatives of the 6 banks which are Al Rajhi Bank, the Saudi British Bank (SABB), the Arab National Bank (ANB), Samba Financial Group, Bank AlJazira, Bank Albilad and HSBC which is the financial advisor for the corporation and the investment agent for the banks in this deal.

The agreement aims to finance the needs of the corporation to mid-2024, within the framework of financing part of the deals to purchase 73 aircraft from Airbus and Boeing, which were previously announced, including: 20 aircraft of A321neo, 15 A321XLR and 8 787-10 for the Saudi Arabian Airlines as well as 30 A320neo for Flyadeal.

The corporation has received 5 787-10 aircraft from this deal so far.

Saudia said this is part of the commitment to promote tourism as well as Hajj and Umrah sectors in line with the Saudi Vision 2030 objectives to attract 100 million tourists and 30 million Umrah performers annually.

At the signing - (Image: SPA)