Punted as the largest deal to date in Saudi Arabia’s aviation history, Saudia (SV, Jeddah International) has clinched a SAR11.2 billion (USD3 billion) fleet financing deal with six Saudi banks covering the airline’s aircraft financing requirements to mid-2024.
Part of the funding will go towards the acquisition of 73 new aircraft, including previously announced purchase agreements of twenty A321neo Family aircraft, fifteen A321-200NY(XLR)s, as well as thirty A321-200Ns for low-cost sister carrier flyadeal (F3, Jeddah International), and eight B787-10s, the Saudi national carrier said in a statement.
The Saudi flag carrier has made significant investments in its fleet in recent years as the Kingdom pushes ahead with a plan to attract 100 million tourists and 30 million Umrah pilgrims per year under its Vision 2030 economic diversification plan. The airline took delivery of its fifth B787-10 in October, bringing the total number of aircraft in its fleet to 154, according to the ch-aviation fleets module.
Providing the liquidity are Al Rajhi Bank, the Saudi British Bank (SABB), Arab the National Bank (ANB), Samba, Bank AlJazira, and Bank Albilad. HSBC Saudi acted as the airline's financial advisor and is the appointed investment agent in the transaction. Total bids received for the financing requirements exceeded SAR18 billion (USD4.8 billion).
The airline will continue to improve its facilities in order to capture a sizeable market share when the market rebounds, it said.
Transport Minister Saleh bin Nasser Al Jasser labelled the deal a “major milestone” for Saudi Arabia’s aviation sector, adding it would contribute substantially to the Kingdom’s long-term economic growth and development.
