Flynas signs SAR 504M Murabaha facility with SAB

Flynas signs a SAR 504 million, 12-year Murabaha facility agreement with Saudi Awwal Bank

Flynas inked on Aug. 28 a Murabaha facility agreement with Saudi Awwal Bank (SAB) for SAR 504 million ($134.4 million) to finance the purchase of several aircraft.

The credit facility has a tenor of 12 years, and there are no related parties involved.

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As collateral for the financing, Flynas issued promissory notes, mortgaged the aircraft in favor of the bank, assigned insurance and reinsurance rights, and manufacturers’ warranties for the aircraft structure and engines.

The financing facility aims to cover the cost of receiving a number of Airbus A320neo aircraft under the company’s purchase agreement with Airbus, which forms part of its confirmed order for 195 narrow-body aircraft (159 A320neo and 36 A321neo), while supporting its future expansion plans.

This strategic transaction represents an important step in supporting its fleet expansion strategy, enabling it to meet growing demand for air travel, enhance operational efficiency, and support capital restructuring initiatives.

Flynas further emphasized that the transaction reflects its commitment to keeping pace with the rapid growth of the aviation sector in Saudi Arabia, in line with Vision 2030 programs that aim to establish the Kingdom as a global hub for travel, tourism, and logistics services.