Saudia Group Explores Financing for New Airbus Aircraft

Saudia Group has signed a memorandum of understanding with the Saudi Export-Import Bank and Crédit Agricole Corporate and Investment Bank to develop financing solutions for the acquisition of new Airbus aircraft.

Under the proposed structure, Crédit Agricole CIB will act as financier and arranger, developing and arranging aircraft financing in line with Saudia Group’s delivery schedules. Saudi EXIM will support the transactions through credit risk insurance, subject to its credit and insurance requirements and agreement on final terms.

The structure is intended to combine international bank financing with Saudi export credit support, potentially broadening the pool of international lenders available to finance Saudia’s fleet expansion.

Saudi EXIM’s participation is linked to the export of Saudi air transport services. As Saudia expands its fleet and international network, the additional capacity is expected to increase the Kingdom’s provision of air transport services to international markets.

Saudia Group said the financing initiative will support its fleet growth and modernization program while diversifying its sources of capital and providing greater flexibility in funding future aircraft investments.

The parties also agreed to explore additional financing transactions associated with future aircraft orders and fleet development programs, potentially establishing a longer-term financing partnership.

The MoU was signed in Paris during a French-Saudi investment roundtable by Saudia Group Director General Ibrahim Al-Omar, Saudi EXIM CEO Saad Al-Khalb and Crédit Agricole CIB Aviation Group Managing Director André Zervudachi.