Saudia Group has signed a memorandum of understanding with Saudi Export-Import Bank (Saudi EXIM) and Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB) to explore and arrange financing for the airline group’s acquisition of new Airbus aircraft.
Under the MoU, Crédit Agricole CIB will act as financier and arranger, working to structure and provide financing in line with the expected delivery schedules of the aircraft. Saudi EXIM, Saudi Arabia’s export credit agency, will assess providing credit-risk insurance to support the transactions, subject to its credit, insurance and procedural requirements.
The agreement combines international bank financing with Saudi export credit instruments, creating additional avenues for Saudi companies and projects linked to exports to access international sources of finance. By providing insurance against part of the credit risks faced by lenders, Saudi EXIM aims to improve the bankability of transactions, broaden the potential international lender base and attract liquidity to activities supporting the growth of Saudi non-oil exports.
For Saudia Group, the arrangement supports its plans to expand and modernize its fleet and strengthen operational capabilities across international markets. A larger and more modern fleet will also increase the group’s capacity to provide air transport services, strengthen connectivity between Saudi Arabia and global destinations, and accommodate rising international travel flows.
The transaction therefore has a services-export dimension, with Saudia’s fleet expansion supporting the growth of Saudi air transport services in international markets.
Under the MoU, the final financing and insurance arrangements will depend on completion of the necessary procedures, applicable requirements and agreement on the final terms of each aircraft transaction.
