Saudia signs USD 3bn financing deal to expand aircraft fleet

Dhaka: Saudi Arabian Airlines Corporation, better known as Saudia, has signed a financing agreement with six local banks worth SR 11.2 billion (USD 3 billion).

The largest deal in the history of Saudi Arabia's aviation sector, it will finance the expansion of the flag carrier's aircraft fleet, according to reports.

The agreement aims to finance the needs of the company to mid-2024, within the framework of financing part of the deals to purchase 73 aircraft from Airbus and Boeing, which have been previously announced.

These include 20 A321neo, 15 A321XLR and eight 787-10 for Saudia as well as 30 A320neo for Flyadeal. The company said it has received five 787-10 aircraft from this deal so far.

The agreement was signed in the presence of Saleh bin Nasser Al-Jasser, Minister of Transport and chairman of Saudia alongside Saudia director general Ibrahim bin Abdulrahman Al-Omar and representatives of the 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 investment agent for the banks in this deal. 

Saudia said in a statement that the deal embodies its 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.