Saudia Group Signs MoU With Saudi EXIM And Crédit Agricole CIB To Finance New Airbus Aircraft

Saudia Group has signed a Memorandum of Understanding (MoU) with the Saudi Export-Import Bank (Saudi EXIM) and Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB), the global corporate and investment banking arm of France’s Crédit Agricole Group, to explore and arrange financing solutions for the Group’s acquisition of new Airbus aircraft. 

The MoU brings together international bank financing and national export credit instruments, creating new pathways for Saudi companies and projects linked to exports to access international sources of finance. At the same time, it supports Saudia Group’s plans to grow and modernize its fleet and strengthen its operational capabilities across international markets. 

The MoU was signed in Paris on the sidelines of the high-level French-Saudi Investment Roundtable Meeting organized by the Ministry of Investment, in the presence of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister. The roundtable forms part of efforts to strengthen economic and investment ties between Saudi Arabia and France and explore new opportunities for cooperation between national institutions and international financial organizations. 

The MoU was signed by H.E. Engr. Ibrahim Al-Omar, Director General of Saudia Group; H.E. Engr. Saad Al-Khalb, Chief Executive Officer of Saudi EXIM; and Mr. André Zervudachi, Managing Director at Crédit Agricole CIB Aviation Group. 

The MoU establishes complementary roles for the three parties. Saudia Group will continue to execute its fleet growth and modernization plans, while Crédit Agricole CIB, as financier and arranger, will work to structure, arrange and provide financing for aircraft acquisitions in line with their delivery schedules. Saudi EXIM, acting in its capacity as Saudi Arabia’s export credit agency, will support the financing by providing insurance coverage for credit risks associated with the transaction. 

This model demonstrates Saudi EXIM’s role in using credit insurance to help Saudi companies access international financing. By covering a portion of the risk borne by financial institutions, Saudi EXIM can help improve the bankability of transactions, broaden the potential international lender base and attract liquidity to projects and activities that support the growth of Saudi non-oil exports. 

The transaction also has a services-export dimension. Saudia Group’s continued expansion of its fleet and operational capabilities increases its capacity to provide air transport services across international markets, strengthen connectivity between the Kingdom and global destinations and accommodate growing international travel flows, supporting the growth of Saudi air transport services exports. 

Under the MoU, Crédit Agricole CIB will work to develop an appropriate financing structure and arrange financing in line with the expected aircraft delivery schedules. Saudi EXIM will assess and work to provide appropriate credit risk insurance coverage, subject to applicable credit and insurance requirements, completion of the necessary procedures and agreement on the final terms of each transaction. 

H.E. Engr. Ibrahim Al-Omar, Director General of Saudia Group, said: “This MoU marks an important step in developing financing solutions that support Saudia Group’s growing fleet investments, while reflecting the continued advancement of national capabilities and instruments that enable Saudi sectors to access international sources of finance. We value this partnership with Saudi EXIM and Crédit Agricole CIB, which provides us with broader financing options to support our growth and expansion plans.” 

He added: “Fleet investment is a key pillar of Saudia Group’s plans, providing additional capacity to expand our network, increase operational capacity and enhance efficiency. Diversifying our financing sources and solutions also strengthens the Group’s flexibility in executing future investments and reinforces our ability to expand and connect the Kingdom with global markets.” 

H.E. Engr. Saad Al-Khalb, Chief Executive Officer of Saudi EXIM, said: “Saudi EXIM’s role under this MoU is to act as an enabler of financing, using our insurance capabilities to mitigate credit risk for international financial institutions and help open new international financing channels for Saudi companies and projects linked to exports. This model has the potential to expand the use of export credit instruments across a broader range of export-related projects and service sectors, while enabling Saudi companies to access international financing more efficiently through partnerships that combine national credit insurance with global banking expertise.”                                                                                                                                                                                                                                                                   He added: “Our objective goes beyond risk insurance. We aim to use insurance as a tool to mobilize international capital toward Saudi exports. The Bank’s role therefore extends beyond providing insurance coverage for individual transactions to leveraging its insurance capabilities to help national companies access the liquidity, expertise and financing capacity available through global financial institutions. This transaction provides a clear example of that model within the air transport services sector.” 

The MoU reflects a broader approach to building an integrated export-financing ecosystem that combines the risk-bearing and insurance capabilities of national institutions with the liquidity and specialized expertise of international financial institutions. This can strengthen the competitiveness of Saudi companies and expand their capacity to undertake investments linked to growth in international markets. 

The parties also agreed to explore additional opportunities for cooperation on future financing transactions related to aircraft orders and fleet development programs, creating a platform for a longer-term partnership and the potential application of this financing model to future transactions.