KARACHI - Standard Chartered arranged a one year USD 35 million Islamic Structured Trade Finance facility for Pakistan International Airlines (PIA). The Bank was the Sole Arranger and Structuring Bank for this transaction.
The facility is structured as an offshore transaction under an Islamic mode which uses an innovative Services Ijara concept based on purchase and distribution of airline seats.
The Bank’s deep understanding of offshore markets, product knowledge, combined with strong liquidity and a good capital base, made it a perfect choice for leading the transaction. The USD facility will allow PIA to benefit from low interest rates in the international markets. The facility will be utilised by the airline for general corporate purposes.
Hogan Lovells and Haidermota & Co acted as legal counsel to Standard Chartered while PIA was represented by Mandviwalla & Zafar.
The signing of the facility agreements recently took place in Dubai where PIA was represented by Chief Financial Officer Mr. Nayyar Hayat, and Funds Management General Manager Mr. Shahid Munir.
Commenting on the transaction, Standard Chartered Pakistan Chief Executive Mohsin Nathani said, “Standard Chartered, consistent with our brand promise of being ‘Here for good’, is committed to the Pakistan market. We are glad to have successfully arranged this unique facility for PIA and are pleased to be deepening our relationship further. By providing this financing solution we aim to help them meet their long term objectives.