PIA attracts UAE lenders to $90 million Islamic finance

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Pakistan International Airlines Corp (PIA), the national carrier of Pakistan, announced that it raked in $90 million through an Islamic syndicated financing facility.

The facility was arranged by Abu Dhabi Islamic Bank, Al Hilal Bank, Citibank, and United Bank Limited as mandated lead arrangers and joint bookrunners. Clifford Chance and Haidermota & Co. acted as legal counsel to the arrangers.

With Kuwait’s Warba Bank joining the facility as a lead arranger, the airline can expect to increase its transaction to $100 million.

The three-year facility will be used for PIA’s general corporate purposes and to reflect investors’ confidence in the airline, claimed PIA in a statement. It also serves to reintroduce itself in the international financial market and to further develop its banking relationships in the region.

While the accumulated losses have exceeded Rs 100 bn, its current funding will allow the airline to implement a five year business plan which includes financial restructuring and a fleet renewal programme.

 

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Reading Time: 1 minute

Pakistan International Airlines Corp (PIA), the national carrier of Pakistan, announced that it raked in $90 million through an Islamic syndicated financing facility.

Reading Time: 1 minute

Pakistan International Airlines Corp (PIA), the national carrier of Pakistan, announced that it raked in $90 million through an Islamic syndicated financing facility.

The facility was arranged by Abu Dhabi Islamic Bank, Al Hilal Bank, Citibank, and United Bank Limited as mandated lead arrangers and joint bookrunners. Clifford Chance and Haidermota & Co. acted as legal counsel to the arrangers.

With Kuwait’s Warba Bank joining the facility as a lead arranger, the airline can expect to increase its transaction to $100 million.

The three-year facility will be used for PIA’s general corporate purposes and to reflect investors’ confidence in the airline, claimed PIA in a statement. It also serves to reintroduce itself in the international financial market and to further develop its banking relationships in the region.

While the accumulated losses have exceeded Rs 100 bn, its current funding will allow the airline to implement a five year business plan which includes financial restructuring and a fleet renewal programme.

 

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