Saudia seeks $1.3 billion sukuk for fleet expansion

The nationally-owned carrier Saudi Arabian Airlines (Saudia) is seeking to raise $1.3 billion (5 billion Saudi riyals) via the first tranche of a sukuk issuance programme in the second or third quarter of this year.

The funds will be used to finance fleet expansion, as the carrier aims to operate 200 aircraft by 2020. 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.

Our sister publication, Supply Chain Digital, covered the work of the airliner in a full report:

“Starting out with a single airliner back in 1945, Saudi Arabian Airlines has grown to one of the world’s leading airlines, with over 30 million guests served by 45,000 employees in 5,000 locations across 100 destinations. And unlike many other airlines, the national carrier operates around the clock.

Codenamed SV2020, the airline has a five-year strategic plan that aims to double the fleet size by 2020, grow the airlines’ market share, re-invent its products and services and increase its margins.  The strategy was formulated and introduced by Director General Engineer Saleh bin Naser Al Jasser - who joined the airlines in late 2014- to transform the company in every sense and to further secure its competitive positon regionally and globally as well. Eng. Al Jasser has started a corporate wide transformation program aimed at turning it from a legacy carrier to a competitive travel provider with second to none products and services.”

The rest of which can be read here.

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SOURCE: [Arabianbusiness.com]

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