Saudi’s Riyadh Air Gets $1.3 Billion Credit Facility For Launch

By Leen Al-Rashdan

October 31, 2024 at 2:00AM EDT

A Riyadh Air Boeing 787-9 Dreamliner at the Paris Air Show in Le Bourget, Paris, France, on Monday, June 19, 2023. At the Paris Air Show, airlines and leasing companies will place orders, manufacturers will show off civil and military aircraft, and executives will tout new technologies like flying taxis and electric propulsion as the industry pushes toward decarbonization. Photographer: Nathan Laine/Bloomberg (Nathan Laine/Bloomberg)

(Bloomberg) -- Riyadh Air, Saudi Arabia’s startup carrier, obtained a $1.3 billion credit facility from a group of Gulf banks as it looks to raise money ahead of its planned launch in the summer of 2025.

The airline, owned by the kingdom’s sovereign wealth fund, signed an Islamic revolving credit facility amounting to 3 billion riyals, with an option for an additional 2 billion riyals with eight banks in the Gulf, according to a statement Thursday.

The financing “will play a critical role in supporting Riyadh Air’s ambitious aircraft acquisition activities and addressing the airline’s short-term working capital needs as it prepares to launch operations,” according to the statement.

On Wednesday, the airline placed an order for 60 narrowbody jets from Airbus SE, adding short-haul aircraft to its fleet as it looks to challenge regional incumbents including Emirates and Qatar Airways. The efforts are part of Crown Prince Mohammed Bin Salman’s initiative to make Saudi Arabia’s economy less dependent on oil.