Saudi Arabian Airlines' cargo unit has signed a 1.2 billion riyals ($320 million) Islamic loan, according to a statement issued by a law firm working on the deal. The proceeds will fund the expansion of Saudi Airlines Cargo Co's facilities at King Abdul Aziz International Airport in Jeddah and King Khalid International Airport in Riyadh.
HSBC Saudi Arabia, the Saudi British Bank and Al Rajhi Bank provided the loan, with Clifford Chance and Saudi-based Abuhimed Alsheikh Alhagbani Law Firm (AS&H) advising the banks. State-owned Saudi Arabian Airlines, also known as Saudia, was considering listing shares in its cargo business as part of a privatisation plan, an executive said last year. Cargo would be the third unit to pursue an initial public offering (IPO) since the airline decided in 2006 to privatise them.