Saudia Group has signed a tripartite memorandum of understanding (MoU) with Saudi Export-Import Bank (Saudi EXIM) and Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB) to explore and arrange financing solutions for the Saudi airline’s acquisition of new Airbus aircraft.

The agreement was signed in Paris on the sidelines of the French-Saudi Investment Roundtable, hosted by Saudi Arabia’s Ministry of Investment.

The event focused on strengthening economic and investment ties between Saudi Arabia and France and expanding cooperation between Saudi institutions and international financial organisations.

The MoU was signed by Saudia Group Director General Eng. Ibrahim Al-Omar, Saudi EXIM Bank CEO Saad Al-Khalb and Crédit Agricole CIB Managing Director André Zervudachi.

Under the agreement, Saudia will pursue plans to expand and modernise its fleet, while Crédit Agricole CIB will act as financier and arranger, developing financing structures aligned with aircraft delivery schedules.

Saudi EXIM Bank, the Kingdom’s export credit agency, will support the transactions by providing credit-risk insurance subject to applicable requirements.

The arrangement combines international banking expertise and liquidity with Saudi Arabia’s export credit capabilities.

Saudi EXIM’s insurance coverage is designed to reduce risks for financial institutions, improve the bankability of aircraft transactions and broaden access to international financing.

The initiative is also intended to strengthen the competitiveness of Saudi companies and support investment linked to the growth of the Kingdom’s non-oil economy.

By attracting international liquidity, the financing model could help Saudi businesses undertake larger growth-oriented investments and expand their presence in global markets.

The parties will complete the required procedures and negotiate final terms for individual transactions.

They also agreed to explore further cooperation on future aircraft purchase orders and fleet development programmes, potentially establishing a longer-term financing partnership.

The agreement supports Saudia’s broader efforts to modernise its fleet and strengthen its international operations while highlighting the growing role of Saudi financial institutions in facilitating cross-border investment and strategic corporate expansion. -TradeArabia News Service