Pakistan International Airlines, the national flag carrier of Pakistan, announced the successful close of a $120 million secured syndicated Islamic facility. Citibank and Mashreqbankpsc acted as joint lead arrangers, bookrunners and coordinators for the facility.
The transaction received an overwhelming response from the market and was over-subscribed.
The syndicate comprised of a diverse set of banks spread across the GCC and South Asia. The participating banks included Askari Bank, National Bank of Pakistan, Noor Bank PJSC, United Bank Limited and Warba Bank K.S.C.P as mandated lead arrangers and bookrunners, Bank Islam Brunei Darussalam Berhad as lead arranger and Bank Alfalah as arranger. This transaction reiterates the multitude of synergies developing between the Middle East and Pakistan.
The facility carries a tenor of 3 years and is secured by select receivables of the airline. The proceeds of the facility will be utilized to support the company’s ongoing strategic growth plans and general corporate purposes.
Nayyar Hayat, CFO of PIA, said: “PIA is one of the largest public sector entities in Pakistan and holds strategic importance for the government of Pakistan, and, through this transaction, it has once again successfully secured a 100% Shari’ah-compliant structured debt instrument as part of its on-going strategic capital raising program to support its intensive growth plans and evolve into the a leading international airline. This syndication reiterates the company’s access to avail international liquidity, with the same success it has accomplished with local financial institutions. We are delighted to have worked with Citi & Mashreq and all the participating banks on this successful transaction.”
Nadeem Lodhi, CCO and MD of Citibank, Pakistan said, “The swift closure of this transaction is a testament to materialization of PIA’s strategic growth plans. Pakistan is a key market for Citi and we remain committed to working closely with clients and providing financing solutions for their growth needs.”