Samba Financial Group along with a consortium of banks has provided Shariah-compliant financing facilities
to Saudi Arabia Airlines worth SAR 7.2 billion. The transaction enabled Saudi Airlines to purchase 26
aircrafts of different types, which the official carrier of the Kingdom of Saudi Arabia added to its fleet
to operate on international lines and raise its capacity to meet the expansion and development plans of
Saudi Arabian Airlines. Samba has assumed the role of Facility Agent and Security Agent for the facility.
In addition to Samba Financial Group, the Consortium includes Banque Saudi Fransi and The National
Commercial Bank. Samba Capital & Investment Management Company "Samba Capital" as the Sole Bookrunner
and Coordinator for the initial bridge facility continued to take a key role in coordinating and
structuring the current Facility between Saudia and the bank consortium. The financing package provides
Saudi Arabian Airlines the financial flexibility to boost its fleet strength and thereby ensuring that
aspirations to strengthen its presence within the growing commercial aviation sector in the region are met.
His Excellency Engineer Khaled Bin Abdullah Al-Molhem, Director General of Saudi Arabian Airlines commented
"The global air traffic witnessed significant growth, notably in the Middle East, which is home to a number
of major investors in this sector, thanks to their ability to make decisions and implement them faster".
He highlighted that "Saudia aims to build a "strong hub" in Jeddah as a major point for international air
traffic and cement its competitiveness on a regional level.
Al Molhem further emphasized that "this agreement will strengthen the ability of Saudi Arabian Airlines
to implement its expansion plans and grow its business in light of the opportunities and incentives in the
aviation sector" and added "the agreement also embodies the close partnership that connects us with the
local banking sector and underlines the confidence of the participating banks in the Saudia growth strategies".
On his part, H.E. Mr. Eisa bin Mohammad Al-Eisa, Chairman of Samba Financial Group, said "We are proud to
play this pivotal role in closing this deal, which will have direct and positive effects in the embodiment
of the aspirations of the national carrier of Saudi Arabia and cement its leading position within the vital
aviation sector in the Middle East.
Al Eisa addressed his thanks and appreciation to other banks in the financing transaction for their
constructive cooperation to close the deal, which underscores the strength of Saudi banking relationships,
and ongoing commitment of Saudi banks to support the national companies and institutions to support their
ambitious investment programs".
Notably, Saudi Arabian Airlines is waiting the delivery of 18 planes remaining from previous orders
placed during the last six years totaling 90 jets. Saudia is in need of 100 new aircrafts by 2020 to
meet the escalating growth rates in the Saudi market, where the number of passengers traveling via
Saudia hit 25 million a year, according to the statistics of last year, of whom 15 million passengers
travelled on domestic flights to 27 airports in Saudi Arabia .