Saudia Signs Tripartite MoU with Saudi EXIM Bank, Crédit Agricole to Finance New Airbus Aircraft

Saudia Group signed a tripartite memorandum of understanding (MoU) with Saudi Export-Import Bank (Saudi EXIM) and Crédit Agricole CIB, the Corporate and Investment Banking arm of Crédit Agricole Group. The MoU aims to explore and arrange financing solutions for Saudia's acquisition of new Airbus aircraft.
 The MoU marks a significant step toward integrating international bank financing with national export credit instruments. It opens new channels for Saudi companies and projects to access international financing while supporting Saudia's plans to expand and modernize its fleet and enhance its capabilities in international markets.
 The MoU was signed in Paris on the sidelines of the French-Saudi Investment Roundtable hosted by the Ministry of Investment. The roundtable aimed to strengthen economic and investment partnerships between Saudi Arabia and France and explore new opportunities for cooperation between national institutions and international financing entities.
 The memorandum was signed by Director General of Saudia Group Eng. Ibrahim Al-Omar, CEO of Saudi EXIM Bank Eng. Saad Al-Khalb, and Managing Director of Crédit Agricole Corporate and Investment Bank André Zervudachi.
 Under the memorandum, Saudia will implement its investment plans to expand and modernize its fleet. Crédit Agricole Corporate, as financier and arranger, will structure and arrange the necessary financing for aircraft purchases in line with delivery schedules. Saudi EXIM Bank, as the Kingdom's export credit agency, will support the financing by providing insurance coverage for credit risks associated with the transactions.
 The arrangement demonstrates Saudi EXIM Bank's role in using credit insurance to facilitate Saudi companies' access to international financing. By covering part of the risks borne by financial institutions, the bank helps enhance the bankability of transactions and broaden the pool of potential international financiers. It also helps attract liquidity to support projects and activities related to the growth of Saudi non-oil exports.
 Under the MoU, Crédit Agricole Corporate will develop the appropriate financing structure and arrange financing in line with anticipated aircraft delivery schedules. Saudi EXIM Bank will assess and provide appropriate credit-risk insurance coverage in accordance with applicable requirements. The parties will also complete the necessary procedures and agree on final terms for each transaction.
 The memorandum reflects an integrated approach to export financing, combining the risk-bearing capacity of national institutions with the liquidity and specialized expertise of international financial institutions. It also aims to enhance the competitiveness of Saudi companies and expand their capacity to undertake growth-oriented investments in international markets.
 The parties agreed to explore further cooperation on future financing transactions related to aircraft purchase orders and fleet development programs. This lays the groundwork for a long-term partnership and the potential application of the financing model to future transactions.