Pakistan International Airlines Corporation (PIA) recently announced the successful closure of its US$ 120,000,000 Secured Syndicated Islamic Facility.
Citibank and Mashreq Bank PSC acted as joint initial mandated 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 GCC and South Asia. The participating banks included Askari Bank Limited, National Bank of Pakistan, Noor Bank PJSC, United Bank Limited and Warba Bank KSCP as mandated lead arrangers and bookrunners, Bank Islam Brunei Darussalam Berhad as lead arranger and Bank Alfalah Limited as arranger. This transaction once again reiterates the multitude of synergies developing between the Middle East and Pakistan.
The facility carries a tenor of three years and will be utilized to support the Company’s ongoing strategic growth plans and general corporate purposes.
The industry's first Islamic Euro Nostro Account has recently been launched by Standard Chartered Bank. It will allow Islamic banks across the world to earn profits on their account balances, respecting the general rules of Murabaha. Bank Alfalah Limited from Pakistan was the first bank which has signed an agreement with Standard Chartered Bank.