Saudi Arabian Airlines

Saudi Arabian Airlines appoints HSBC to arrange 5 bln riyal sukuk - exec

National carrier Saudi Arabian Airlines (Saudia) has appointed HSBC as the lead arranger for a 5 billion riyal ($1.3 billion) sukuk issue. According to director general Saleh al-Jasser the sukuk would be sold in the second half of the year. Jasser said last month that the sukuk offering would finance fleet expansion, with the carrier aiming to operate 200 aircrafts by 2020.

Saudi national carrier seeks $1.3bn sukuk to expand fleet

National carrier Saudi Arabian Airlines (Saudia) is seeking to raise 5 billion riyals ($1.3 billion) via the first tranche of a sukuk isuance programme in the second or third quarter of this year, its director-general Saleh al-Jasser said. The funds will be used to finance fleet expansion, as the carrier aims to operate 200 aircraft by 2020. Details of the second tranche of the sukuk programme have not been determined, he added. The airline has been spinning off units in the last several years; it is now preparing documentation to hive off its cargo unit in an initial public offer of shares, Jasser said without giving details.

Saudi carrier takes 50 Airbus planes in Islamic leasing deal

Saudi Arabian Airlines will take delivery of 50 aircraft from Airbus in the largest aviation deal to be secured via Islamic financing. Airbus announced the deal at the Paris Airshow earlier this month, which includes 30 A320neo planes and 20 A330-300 Regional aircraft worth around $8.2 billion based on list prices. Dubai-based International Airfinance Corporation (IAFC), an Airbus-backed sharia-compliant aircraft leasing fund, will buy the aircraft and lease them to Saudi Arabian Airlines, it said in a statement. IAFC, which exclusively finances Airbus aircraft for clients in the Middle East, Asia and Africa, was launched in June last year with seed capital from Airbus and the Jeddah-based Islamic Development Bank. The fund appointed Dubai-based Palma Capital and Quantum Investment Bank as arrangers to complete the deal, which consists of both equity and debt financing.

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