Karachi, Standard Chartered arranged a one year US$35 million Islamic Structured Trade Finance facility for Pakistan International Airlines PIA. Bank was Sole Arranger and Structuring Bank for this transaction structured as offshore transaction under an Islamic mode which uses innovative Services Ijara concept based on purchase and distribution of airline seats, says press release issued on Monday.
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 facility will allow PIA to benefit from low interest rates in the international markets. It will be utilized by the airline for general corporate purposes. Hogan Lovells & Haidermota & Co acted as legal counsel to Standard Chartered while PIA was represented by Mandviwalla & Zafar.
The signing of facility agreements recently took place in Dubai where PIA was represented by Nayyar Hayat Chief Financial Officer & Shahid Munir, General Manager Funds Management, press release said.
Mohsin Nathani Chief Executive Standard Chartered Pakistan said, Standard Chartered, consistent with our brand promise of being Here for good, is committed to Pakistan market. We are glad to have successfully arranged this unique facility for PIA and pleased to be deepening our relationship further. By providing this financing solution we aim to help them meet their long term objectives.