Saudia, Saudi EXIM and Crédit Agricole CIB Sign MoU on Airbus Financing
PARIS, August 26 (Saudi Arabia Breaking News) — Saudia Group, the Saudi Export-Import Bank and Crédit Agricole CIB have signed a tripartite memorandum of understanding to explore and structure financing for Saudia’s acquisition of new Airbus aircraft.
The proposed framework would combine international bank financing with credit-risk insurance from Saudi Arabia’s export credit agency. It is intended to support Saudia’s plans to expand and modernize its fleet while creating a structure that could be applied to future aircraft transactions.
Crédit Agricole CIB would develop the appropriate financing structure and arrange funding in line with anticipated aircraft delivery schedules. Saudi EXIM would assess the transactions and provide suitable credit-risk insurance coverage in accordance with applicable requirements.
The credit insurance would cover part of the risk assumed by financial institutions, supporting the ability of Saudi companies and projects to access international funding and potentially widening the pool of participating financiers.
The MoU does not establish the final financial terms of individual aircraft transactions. The parties must complete the necessary procedures and reach separate agreements covering the conditions applicable to each transaction.
Saudia Group Director General Eng. Ibrahim Al-Omar, Saudi EXIM Bank CEO Eng. Saad Al-Khalb and Crédit Agricole Corporate and Investment Bank Managing Director André Zervudachi signed the memorandum in Paris.
The signing took place on the sidelines of the French-Saudi Investment Roundtable hosted by the Ministry of Investment. The three institutions also agreed to examine further cooperation involving future aircraft purchase orders and fleet development financing.
Source: SPA
